This short doco is part of an ongoing series that on the strength of the first episode appears to be well worth subscribing to.
My favourite bit –
Typical of the reports produced on this subject is this one by the Pensions Institute, based at Cass Business School in London.
Researchers examined 516 UK equity funds between 1998 and 2008, and found that just 1% of managers were able to produce sufficient returns to cover their trading and operating costs.
But even those managers pocketed for themselves any value they added in fees, leaving nothing for the investor.
The remaining 99% of managers failed to deliver any outperformance – either from stock selection or from market timing.
In case you’re wondering whether those managers were simply unlucky, the researchers found the vast majority weren’t; they were “genuinely unskilled”.