Our Insights

About personal finance, investments and markets.
March 24, 2015

What’s the secret behind a fund that is beating 98% of its competitors?

One of the key message we try to convey to our clients is that activity is overrated. It is a common misperception that a successful wealth manager should turn over the assets frequently. This could not be further from the truth. A good example is the Voya Corporate Leaders Trust Fund, that has beaten 98% of its peers over both the past 5 and 10 years according to Morningstar.

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What’s the secret of its success? The fund has not been genuinely reshuffled since 1935. It has taken on the shares of parent companies when firms it owns were acquired or merged, but it has not made an independent decision to invest in a new company for 80 years!

Wealth management is similar. Good wealth management is about (1) finding the appropriate strategy, (2) pick the investments and (3) come back once or twice a year to check.

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