Is Active Fund Management Stuck in the Past?

The financial industry is often seen as fast-moving and innovative — but is that reputation deserved?

In this episode, we dive into the surprising realities of active fund management with Professors Yuval Millo (University of Warwick) and Crawford Spence (King’s Business School), two of the authors behind Inertia: Purposeful Inefficiencies in Financial Markets.

Drawing on interviews with around 70 active fund managers and equity analysts across the UK and US, Millo and Spence reveal a world where risk-taking is punished, mediocrity is rewarded, and even industry insiders avoid the very products they sell.

Why does this inertia persist? What does it mean for the future of active investing? And why do so many financial advisers still push active funds?

Tune in for a thought-provoking conversation that lays bare the inner workings — and contradictions — of an industry resistant to change.

The last ten years transformed investing, but Jason Butler says that was just the warm-up act.

While passive funds slashed costs and robo-advisers democratized investing, he believes we're on the brink of something much bigger.

His prediction? The UK will lead a global financial revolution by 2035, delivering AI-powered personalised strategies, reducing costs, and making today's investment access look primitive. 

Jason breaks down his bold vision in the latest episode of The Investing Show from Timeline.

Retirement is a huge life change. And yet most people don’t start thinking about it, let alone start planning for it, as early as they should.In this episode, Robin Powell talks to Pete Matthew about how to prepare, financially and otherwise, for the life you really want. Pete is one of the UK’s best-known financial voices, Pete Matthew — author, podcaster, and Chartered Financial Planner — about his brand-new book, The Meaningful Money Retirement Guide. Pete shares hard-earned wisdom from 25 years in the business. He’l be covering what he describes as the three crucial phases of retirement: from the final sprint before you stop working, through the transition itself, to building a new, purpose-filled life after work. If you’re just starting to think about what your life might look like beyond full-time work, this episode is packed with insights and practical advice you won’t want to miss.

Every investor makes mistakes. And, whether or not they want to admit it, many commit the same errors again and again.So what are the most common investment mistakes? And how can you avoid making them? Our guest on this episode is Joachim Klement. Joachim is a former Chief Investment Officer, who now works as an investment strategist at the investment bank Panmure Liberum. He’s an author, and his blog, Klement on Investing, is highly acclaimed.Joachim discusses five of the most common mistakes investors make and how you can avoid repeating them.

The shift from active investing to index funds is accelerating—billions are being saved in management fees, and actively managed funds are seeing record outflows. But why is this happening, and what does it mean for the future of investing?In this episode, we sit down with Dr. Tim Edwards, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. Tim breaks down the dominance of index funds, explains why today’s tech-heavy market isn’t as unusual as it seems, and shares his insights on whether passive investing will ever hit its limit.Are we witnessing a permanent transformation in investing? Or will active fund managers make a comeback? Tune in to find out!Subscribe for more insights on finance & investing!

In this episode, Robin is joined by financial expert David Owen to discuss the complexities of financial advisor fees and why good advice can be life-changing. David shares his thoughts on the shift from traditional percentage-based fees to fixed fees, offering a clearer, more predictable model. He also highlights key questions to ask when choosing a financial advisor and why understanding your fee structure is crucial. If you’ve ever wondered how to get the most value from financial advice, this episode is a must-watch!#FinancialAdvice #Investing #FixedFees #MoneyMatters #TheInvestingShow---------------------------------------------------About The Investing Show:Powered by TIMELINE, The Investing Show is your go-to resource for making informed investment decisions. Hosted by Robin Powell and Abraham Okusanya, we bring you the latest industry developments, expert advice, and strategies for successful financial planning.Stay Connected:🎬 Subscribe to THE INVESTING SHOW YouTube channel ▶️ https://bit.ly/4cHKyBqFollow THE INVESTING SHOW:📲 LinkedIn: https://bit.ly/3XNdJ1HSupport THE INVESTING SHOW:☑️ Subscribe to the channel: https://bit.ly/3mu2ZSb📣 Share this video with friends and colleagues🧑🏼‍💻 Like and Comment on our videosOur Sponsor:📈 TIMELINE empowers Financial Advisers, supporting the UK's 10 million retirees. With top-tier planning technology and portfolio management, TIMELINE helps Financial Advisers deliver exceptional value to their clients. 🔺TRIAL IT for just £1 today ➡️ https://bit.ly/4bv1wSD

In this episode, Robin speaks with Victor Hagani, a financial expert and author, about the critical relationship between risk and return in investing. Hagani shares his personal experience with high-risk investing, including his time as a founding partner of Long-Term Capital Management (LTCM), where a dramatic collapse in 1998 taught him painful lessons about the dangers of excessive risk. He emphasises the importance of understanding risk and its impact on long-term wealth building, advocating for low-cost, passive investing strategies like index funds.Hagani explains how actively picking stocks is one of the most competitive activities in the world, with returns that often fail to beat the broader market once costs are considered. He introduces the "Cost Matters Hypothesis" from Vanguard founder John Bogle, which argues that higher fees associated with active investing erode returns, making index funds a more efficient choice for most investors. Hagani also presents the "Risk Matters Hypothesis," explaining that active investors tend to take on more risk than they realise, leading to potentially lower returns.Through personal anecdotes and insightful analysis, this episode offers valuable takeaways for both novice and experienced investors looking to navigate the complexities of risk and make smarter financial decisions.

Are you new to investing, unsure where to start, or overwhelmed by all the jargon? Or maybe you’ve been investing for a while but wonder if there’s a better way to grow your wealth? In this episode of The Investing Show, Robin chats with Ryan King, a chartered accountant, author, and founder of Making Money Simple.Ryan shares his journey of starting to invest as a university student, the mistakes he made early on, and how he built a six-figure investment portfolio by following simple, golden rules: diversification, low fees, and consistency. He breaks down complex concepts like compounding and index funds in a way that’s easy to understand, while offering practical tips on how to get started—even if you only have £10.This conversation is packed with insights, relatable stories, and actionable advice that can help you take control of your financial future. If you’ve been waiting for the “right time” to start investing, this might just be the push you need.Why You Should Watch:- Learn the basics of investing without the confusion.- Discover the power of starting small and staying consistent.- Hear Ryan’s golden rules for stress-free, long-term investing success.Stop waiting—start watching and take the first step toward building your wealth! 🚀

In this episode, we sit down with Gina and Alan Miller, two leading voices in the fight for stronger consumer protection within the financial industry. Together, they tackle key issues surrounding the Financial Conduct Authority (FCA) and the introduction of the new Consumer Duty. Joined by Andy Agathangelou, we explore the ongoing challenges of trust, transparency, and fees, and the widening advice gap. Our guests weigh in on how to strike the right balance between fostering economic growth and ensuring consumer interests are safeguarded. Tune in for a deep dive into the importance of duty of care and the critical need for better financial education.

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Curious about evidence-based investing and how it works for UK investors? In this episode, we break down the essentials of evidence-based investing (EBI) with two experts in the field—Laurentius van den Worm, Head of Investment Strategy at Timeline, and James Gillespie, an investment solutions strategist. Together, we’ll explore what EBI truly means, whether you need a financial adviser, and the best options for your investments. Don’t worry, we’ll keep it jargon-free and accessible. Tune in to gain practical insights on how to invest the smart way!