Clients of Liverpool headquartered financial planning boutique Millen Capital could sleep easy this week despite the news that Neil Woodford, one the UK’s ‘star’ fund managers, had a much-publicised run on his fund due to his recent underperformance -v- the market returns.
Don’t Millen Capital clients invest in Woodford funds, as millions of other UK investors do? No, they don’t, is the simple answer.
In fact, in 2013 Millen Capital ditched high-charging, stock-picking fund managers in favour of low-cost passive funds and in doing removed all fund manager risk from their Apex Portfolios. “Forget the needle”, sums up their typical straight talking, jargon free wealth management. When it comes to investing their investment philosophy is “Buy the haystack, at the lowest cost”.
Celebrating their 20th birthday this year, Millen Capital has rigorously built, and continues to carefully monitor via their Investment Committee, an evidence based investment proposition.
Angus Millen, a 30-year experienced Chartered Wealth Manager and Managing Partner of Millen Capital said recently, “This week in the US we reached a tipping point – 50% of US assets are now managed passively – 50% actively.
The UK will follow as more and more high net worth, smart individuals are presented with, and accept, the academic evidence and data that proves you have a 1/5 chance of a successful investment outcome using active funds that typically charge you 1.50% pa -v- our passive Apex Portfolios which cost a fraction of the cost at 0.25% pa.
When Millen Capital show prospective clients those cost savings, compounded in their portfolio over the next 20 years their reaction is sometimes, literally, draw dropping. “When you combine the cost savings with an acceptance that the odds of selecting the next superstar fund manager in advance of them out performing the market, after their high fees, are stacked heavily against you, most smart investors are shifting their money from active to passive management.”
To ramp up their mission to demystify the jargon that engulfs the world of wealth management and help more people Be Less Ostrich, Millen Capital have recently hired Vicki Harper as their new Head of Client Development.
“I first met Angus and Millen Capital in 2016 and his belief, passion and enthusiasm for both lifestyle financial planning, which is our lead service, underpinned by their evidence based, low cost, passive investment proposition was both compelling and infectious. The opportunity to join Millen Capital and help more HNW individuals Be Less Ostrich was one I jumped at.”