The Big Question: How are you using passives in your portfolios?

THE BIG QUESTION

clock • 8 min read

From accessing efficient markets to controlling cost, wealth managers and multi-managers reveal the many and varied reasons they use passive vehicles.

Mark Harris, CF Eden Global Multi-Strategy fund Equity, fixed income   We use passives to get appropriate access to a particular market. Using, for example, an ETF will give us diversified access at a good price. There are two main reasons for doing this: one, tactically, for asset allocation purposes and two, where we want exposure to a market but where we do not believe that active managers are adding enough value to make it worth our while to use them. Cost is always a major driver, as we want to keep fund charges down as much as possible. Passives also tend to be liquid, wh...

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