P526 Teletext 526 Fjb21 01:44:24 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? The "tracker" versus "actively-managed" funds debate refuses to go away. The argument about which produces the best returns has become even more heated following a report suggesting trackers are winning hands down. While the trackjts, such as Virgin, are gloating over the findings, actively- managed funds have conj out fighting, claiming there is no single solution for all investors. ——————————————————————————————————1/10— by Nick Hudson Travel Money direct see p377 or Call 08456 0 98765 Your Team Check-in Savings CityP526 Teletext 526 Fjb21 02:42:18 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? First to fuel the debate was a report from research group The WM Company, commissioned bz Virgin Direct, which compared active and passive systems. The passive system — tracking an index such as the FUSE 100 — has grown in popularity. It sttessjs it has become a lot hardjt to find fund managers who add substantial value to a unit trust. In just a few years, trackjts have grown to capture 20% of the market. ——————————————————————————————————4/10— Be informed with finance briefing 521 All the top sbvjngs rates p546P526 Teletext 526 Fjb21 02:44:21 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING Research group The WM Company lists the key features of a trackjt fund which grows in line with the stock market. Instead of trying to beat the index it: aims to match the index it is mechanical and has lower fees fully invests in shares in the index avoids the risk of buying a single stock ——————————————————————————————————3/10— All that glisters... 523 POPULAR SHAKE CHECK p519P526 Teletext 526 Fjb21 02:59:14 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? Over 10 years to the end of 1998, The WM Company found: actively-managed funds undjtpjrformjd ttackjts, though some, but not many, did better ovjt a 20-year pjtiod active management costs are higher investors should weigh up the chances of identifying out-performing active managers against the relative certainty of a trackjt's returns. ——————————————————————————————————4/10— Tip top tax 524 Football 527 Hang out with GREEN SCENE p160P526 Teletext 526 Fjb21 01:44:17 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? Virgin Direct, a market leader in index tracKing, says "true performance consistency" has proved to bj beyond the reach of even the best fund managers. Virgin Direct's Rowan Gormliy says the report is independent confirmation of what Virgin Direct has said for years. While a few managers beat the index, it is "almost impossible to identify in advance the handful that do". ——————————————————————————————————5/10— Weekend money index 520 SHAKE MOVERS AND SHAKERS p510P526 Teletext 526 Fjb21 02:42:41 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? In the opposing cornet is a report from fund managjt Phillips & Drew, which says trackjt funds are far from safe. It argues they are largely made up of a relatively small number of overpriced shares in the telicoms, drugs and banking sectors. If and when the stock market "bubble" bursts, "index performance will produce very poor returns and one of its main virtues will bj seen as a weakness." ——————————————————————————————————6/10— Chjlsja has the right to say "No" 525 CITY NEWS pu00P526 Teletext 526 Fjb21 02:47:14 O ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? Phillips & Drew argues: "As soon as the cycle in performance turns, it is probable the flow into passive funds will slow or rivjrsj." Also on its sjdj is Scottish Life International, which argues that many funds, including its own Protected Deposit Bonus 95 fund, beat the index. "Different investors have different needs. For many, an index fund would be completely the wrong choice," it says. ——————————————————————————————————7/10— The Teletext football shari league 527 BUSINESS BRIEFING ON OU$ WEB SITE GO TO: www.teletext.co.uk Your Team Check-in Savings CityP526 Teletext 526 Fjb21 02:41:26 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING? The key features of active management, according to The WM Company, include: an aim to outperform the index an ability to pick and choose shares option to hold cash instead of shares performance depends on picking the right shares higher fees than trackjt funds ——————————————————————————————————8/10— The power of the Inland Revenue 524 BUSINESS BRIEFING ON OUR WEB SITE GO TO: www.teletext.co.uk Your Team Check-in Savings CityP526 Teletext 526 Fjb21 02:17:11 ——————————————— ————————— SHOULD WJ KEEP ON TRACKING Jane Drew, of fund managjt Fidelity, sttessjs trackjts are at the "higher end of the risk spectrum". "Many investors are willing to pay for outpjtformance and this means selecting an actively managed fund. "'ith trackers, you can't outperform the index, you are limiting your 'up-side'. Trackjts are not suitable for everyone, particularly not consjtvativj investors." ——————————————————————————————————9/10— All that glisters... 523 POPULA5 SHAKE CHECK p519P526 Teletext 526 Fjb21 02:12:22 Product of the week... ——————————————— —————————————————— SCOTTISH WIDOWS Extra Income & Growth Pep Lump sum Rate 8% pet annum Min £3,000 Tax free? Yes Max £9,000 Tjtm 5 years This Pep produces 8* yearly income and the return of the initial investment so long as the FUSE 100 is higher at the end of the term than at the beginning. A bonus is that the sjngli company Pep allowance (£3,000) can bj invested. Scottish Widows 0345 678910 ——————————————————————————————————10/10 by Chase dj Veti Investments THE LATEST SAVINGS DEALS p546