T Zia Compliance

This time I am reviewing the performance of actively managed funds by UK based managers, Nutshell Growth Fund (Retail Acc), FundSmith Equity  T Acc (Retail), Blue Whale Growth Fund (Retail Acc) compared to Invesco Nasdaq 100 and SPDR S&P 500 UCITS for the past 3 years. Nutshell is the youngest of these 3 actively managed funds (launch date 18th May 2020), so does not have a long track record and therefore difficult to really analyse. But nevertheless the chart is an illustration of the difficulties of actively managed fund managers to perform better than Nasdaq 100 or S&P 500. This time the analysis is on Fundsmith Equity T Acc (Retail) compared to the USA listed (QQQ), Nasdaq 100 ETF and USA listed SPDR S&P 500 (SPY) as the UCITS version lack the data. The analysis period is 10 years and again even though FundSmith Equity has outperformed the S&P 500 (SPY), it has failed to match the QQQ.  Its is an extremely difficult task to match or beat these benchmar...

I am a real sceptic in the ability of so-called active investment managers to outperform what I regard as the primary benchmark indexes namely the S&P 500 and more recently the Nasdaq 100 (since its inception in the mid 1980's). Both of these two indexes are now easily investable via an ETF. The below chart is just a simple illustration of two hedge fund feeder funds (HF) that are listed on the London Stock Exchange (LSE) and Euronext. Th chart compares the performance of Pershing Square Holdings (since it commenced trading on Euronext in October 2014) to BH Macro, the S&P 500 and the Nasdaq 100. Most of the entry into the hedge fund arena is open to only those from HNWI or UHNWI, family offices, private banks, fund of funds. Retail investors if they were to choose an investment are best to do their research (which is not an easy feat) into selecting a hedge fund feeder fund listed and has a degree of liquidity. But remember entry and exit of these investments are a real di...

The below is a 10 year comparison chart for the Indian Nifty 50 index compared to FTSE 100, Euro Stoxx 50, Euro Stoxx 600, S&P 500, Nasdaq 100 and MSCI World. The market capitalisation growth of the Nifty 50 over the last 10 years has been very impressive, but has not outperformed the technology heavy Nasdaq 100. It is hard to argue that the Nasdaq 100 won't do well into the next 10 years given that it will admit those companies that will best perform when it comes to new and emerging technology based industries and sectors. The S&P 500 however still outperforms UK and European indexes shown on the chart.