Buy these managed funds while you still can

There is one class of managed fund that is cheap, easy to buy, and which outperforms most other funds in rising markets, says Merryn Somerset Webb. But these funds are under threat. So buy them while you still can.

The biggest argument in fund management is between those who believe that it is possible (and consistently so) for an individual manager to outperform the stock market, and those who do not.

The evidence is all on the side of the passive approach. Study after study has shown that the average fund manager underperforms the stock market and that the fees he charges to do so pretty much guarantee the ongoing poverty of his clients.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.