May
20
Big, Old and Ugly Stocks Look Pretty to Bank of America
ByGo after the ones “active” managers won’t touch
Photographer: Luke Sharrett/Bloomberg
At best, you would hope the consultant you hired to help pick out mutual funds had your specific investment goals and risk tolerances in mind. Or at worst, you would hope the consultant had something more in mind than a raging desire not to get fired.
But that’s the delightfully cynical theory being floated by Bank of America Merrill Lynch strategist Savita Subramanian. In her assessment, the key motivation by consultants may be to justify their existence by making clients believe they are getting something for their money when they invest in an active fund with way higher fees than passive funds that simply track benchmark indexes…
