Regular readers of this paper will be familiar with the arguments outlining the perceived investment benefits of index-tracking funds, more commonly known as “trackers” or passive funds. But, as a manager of actively-managed funds of funds, I’d argue that trackers are, frankly, crackers!

Proponents of tracker funds claim that the vast majority of actively-managed funds underperform the index, so you should avoid investing in actively-
managed funds and buy the index’s own performance via an index- tracking vehicle, traditionally an open-ended fund.