Every time you turn on CNBC you will see advertisements by Mutual Fund companies trumpeting why they are a good investment.  However, when it comes to the real world of your money ; I say Action talks – BS walks.

A general premise of passive investing is that unmanaged index funds outperform managed funds year after year. This year is no different. According to data compiled by JP Morgan Chase and Bloomberg only 13% of actively managed funds were beating their benchmark index by at least 2 1/2 percentage points this year as of July 23, 2012. This proportion was the lowest since the mid – 1990’s, The 2 & 1/2 % figure is used because the all in costs of actively managed funds are estimated about that much more on average when you compare costs to a no load index fund by low cost providers like Vanguard. This considers not only the expense ratio but also the trading fees and taxes that come from much higher turnover of actively managed funds.

This year thus far it has been a different story for Alhambra Investment  Partners actively managed tactical portfolios. All five portfolios are currently  outperforming their benchmark index.

So whether you are a fan of the Passively Managed Strategic approach or the Actively Managed tactical approach, or a combination, we have portfolios that can meet your investment objectives.  To find more details contact your Alhambra representative.

 

Patrick Manning