A week or so ago an adviser asked me to write to a client and explain why the cost of his portfolio was so much more than the new Vanguard direct offering. Those of you that know me, know that I love what Vanguard do and so I found this quite challenging.
My conclusions and research did surprise me and whilst I am still an advocate of passive over active investment, I think the charts speak for themselves in some instances.
I don’t confess to being over technically minded when it comes to fund research and recognise that past performance is no indication of future returns but hopefully this provides food for thought in the ongoing debate.
I did go on in the report to address the issue of cost but I think we all know that the Vanguard offering is at least four times cheaper than what the client is currently paying.
I welcome constructive criticism, I said constructive.