By Scott Ronalds
Vinyl records are making a comeback. And why not? They provide a warmer, deeper sound. The odd skip provides a welcome element of imperfection. Plus they look cool.
Vinyls are just one of many “retro” products and services that are resonating with consumers these days. Others include bikes, watches, toys, barber shops and cocktails. Maybe it’s the old world craftsmanship, attention to detail, simplicity, or just nostalgia that’s driving the comeback.
In the investment world, the retro movement has been slower to gain traction. Investors and the media still seem enamored with the emergence of alternative investing, structured products, private equity and more recently, robo-advisors. Perhaps it’s because these products/platforms infer advancement and superiority. But investment returns always come down to stocks and bonds, and sound management. Bells and whistles often add complexity, risk and cost.
We’re keen observers of new trends and technologies, but when it comes to managing money, we prefer to keep it simple: low costs, straightforward offering, concentrated portfolios and crisp service. And we deliver our philosophy through a structure that was developed many decades ago – the mutual fund. Call us old school.
The mutual fund has become passé in some circles and has taken a backseat to more exotic investment products. But when it’s stripped down to its basics and built with old world craftsmanship (low fees, sensible mandate, right-sized), it’s still a great tool.
Can the old school mutual fund make a comeback? We think it can. And we put our money where our mouth is.
Atari, anyone?