British Documentary Skewers Active Management
A new multi-part British documentary, How to Win the Loser’s Game, takes a hard look at active management. Although done with typical understatement, the results are not pretty.
The complete documentary will not be available until Nov. 5. But you can view the first three parts, produced by Sensible Investing, here. It should be required viewing for every investor. Here are some highlights:
The disconnect between salaries and performance
Active fund managers in the U.K., like their counterparts in the U.S., are paid handsomely. At one fund management company, the average annual salary was in excess of $700,000. While the industry claims that it has to offer huge financial incentives to attract the most talented fund managers, the reality is quite different.
Read the rest of the article at The Huffington Post.