Why income seekers should not dismiss passives

clock • 4 min read

Simon Ellis, managing director at Legal & General Investments, explains why investors are wrong to view index funds purely as capital growth plays.

The shift towards passive management is one we have seen over a number of years in institutional markets. This trend is now being played out in the retail investment market, and the pace of change should accelerate with the arrival of the Retail Distribution Review (RDR) in 2013. One of the anticipated impacts of the RDR is a pressure on intermediaries to reduce portfolio costs, and this is expected to result in a greater use of low-cost passive funds within client portfolios.  In a low growth environment, charges become increasingly important and can have a significant impact on inve...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Stepping out of cash into the Credit Sweet Spot

Event Voice: Stepping out of cash into the Credit Sweet Spot

Peter Marsland, Fixed Income Investment Specialist, from Aberdeen discusses the Short Dated Enhanced Income Fund at the June Fixed Income Market Focus.

Peter Marsland, Fixed Income Investment Specialist
clock 08 July 2025 • 4 min read
Investors undergo 'buyers' strike' in June sending order values to two year low

Investors undergo 'buyers' strike' in June sending order values to two year low

Middle East conflict did not deter investors

Eve Maddock-Jones
clock 08 July 2025 • 2 min read
The big questions around re-evaluating risk for the retail investment industry

The big questions around re-evaluating risk for the retail investment industry

Discussions at Global Investment Management Summit

Katrina Lloyd
clock 08 July 2025 • 8 min read
Trustpilot