Whole Money
helping anyone invest successfully

Whole Money

Something jolly exciting


Introducing Whole Money (WM)


“If you can’t beat ‘em, join ‘em” goes the old idiom.

Our Whole Money Portfolio is great for those who are looking to build a nest egg at low cost. Life is expensive enough without incurring huge management fees that detract from the performance of your investment.

Financial luminaries such as Warren Buffet and John Bogle say the best way to beat the market index is to buy the market, all very good if you are a billionaire. A way to adapt this strategy for real life is to buy products that cover the whole market.

The Whole Money portfolio is designed to provide the return of the total market at very low cost. Whole Money portfolio is made up of around twenty index funds providing the return of the total market, which is very hard to beat.

It’s all rules based, automated and re-balances when the make-up of the total market changes, all derived from the allocation of the £250 billion invested in Managed Portfolios on the LSE. We do this to keep the cost of expensive fund managers down but the performance aligned to buying the whole market.


Why no one can beat the return of the total market

In any one year, the total market portfolio described above will return the average of the market, which some managers will beat while others will underperform.

Active managers generally have an investment style that might specialise in large cap or small cap, fixed income, the US or emerging markets. At certain times during a typical economic cycle a certain strategy may do well but equally others will be out of favour. The previously mentioned Warren Buffet gained his reputation in the 1980s and 1990s as the Wizard of Omaha by investing in large cap, US value stocks but as values of this sector of the market inevitably increased as others tried to copy his strategy, his returns suffered in the 2000s.

Analysis shows that some 90% of managers underperform their index equivalent over 5 years or more.

How costs can significantly eat into your profits

Costs are another significant factor in how much you make from your investments. Management and investment fees add up every year – it’s like trying to sail into the wind and the higher the fees, the stronger the wind and the slower you will go. You might even go backwards!

Leading fund information provider Morningstar, in their semi-annual review (August 2018) of 4,500 actively managed funds vs. their passive equivalents found that only 13% of what they categorised as high cost funds beat their passive equivalent.

They concluded: “investors would greatly improve their odds of success by favouring low-cost funds, which succeeded far more often than high-cost funds over the long term”.

A recent FCA review of the wealth management industry found that the average overall charge for a fund investment was 2.3%. This means 60% of your profit is lost in fees. Whole Money is one of the lowest cost clever passive investment options available.