Should you swap your star fund manager for a cheap tracker?
This is Money Podcast
This is Money
4.4 • 732 Ratings
🗓️ 16 January 2026
⏱️ 50 minutes
🧾️ Download transcript
Summary
Life isn't what it once was for star fund managers. The investment industry once thrived on big names but these widely recognisable figures are few and far between nowadays.
Two that remain are Terry Smith and Nick Train but their Fundsmith and Finsbury Growth & Income investors have had their patience tested by five years of underperformance compared to just sticking money in a cheap market tracker fund.
Both managers defended their approach this week, while offering their investors an apology of sorts.
So, is it time to swap your star fund manager for a cheap index fund, or are the stock pickers likely to be proved right in the end?
On this podcast, Georgie Frost, Helen Crane and Simon Lambert discuss the cult of the fund manager and whether it's had its day.
Meanwhile, The Chancellor wants to get more of us investing but MPs have looked into her plans to cut the cash Isa limit and said it's unlikely to lead more people to the UK stock market. That's exactly what most investment experts told the Chancellor before the Budget, so is there any chance of change of heart?
Parts of the London property market have been having a quiet house price crash, Georgie, Helen and Simon discuss what's going on and what kind of properties are affected.
The team also ask if cashback is worth it - and look at the deals that could cost you money.
And finally, if you want a cheap electric car runaround, what are your best options and what would it cost you?
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Hosts: Georgie Frost, Simon Lambert, Lee Boyce, Helen Crane
Producer: Georgie Frost
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Transcript
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| 0:00.0 | Welcome for This Is Money podcast sponsored by Charles Stanley Direct. I'm Georgie Frost and joining me and Simon Lambert today is Helen Crane. And coming up, two of Britain's best known fund managers had a year to forget in 2025. So is it time to ditch the star stock pickers? Or are they about to be proved right? Also today, will the Chancellor's |
| 0:21.9 | cash is the limit cut get us investing? Not even MPs are convinced. Is it time to make another |
| 0:27.6 | U-turn? Plus, we look at the quiet London house price crash, ask if cashback is worth it, |
| 0:33.7 | and tell you the best to use electric cars for less than 10 grand. Don't forget you to |
| 0:37.7 | upstate with all the latest breaking money news, just go to this ismoney.com.uk or download |
| 0:42.9 | the app. But first, a message from our sponsors. Do you love talking about money as much as you |
| 0:47.9 | love listening to it? Then you'll enjoy this. Charles Stanley directs financial coaching service |
| 0:52.4 | gives you a real human, yes, an actual expert to help you make sense of your finances. |
| 0:57.1 | No jargon, no pressure, just clear answers to your money questions. |
| 1:00.7 | Book a free 15-minute call today at Charles-Stanley.com.ukukuk forward slash financial coaching. |
| 1:07.6 | Go on, your future self will thank you. |
| 1:09.8 | Remember, investment involves risk. |
| 1:11.9 | Now back to the show. It's been a ruffle 2025 for two of Britain's best-known fund managers. |
| 1:18.7 | Terry Smith's Fund Smith returned just 0.8% for investors, while Nick Trains-Finsbury Growth and |
| 1:24.5 | Income Trust lost its investors 6%. |
| 1:27.8 | As the debate rages over active versus passive, |
| 1:31.1 | it would have proved a better move for investors to ditch the fund managers |
| 1:34.5 | for cheap index tracker funds, simply backing the market. |
| 1:38.6 | And we know someone who holds both Fund Smith and Finsbury Growth in their portfolio. |
| 1:44.1 | So what will he do next? Simon. both Fund Smith and Finsbury Growth in their portfolio. |
| 1:46.4 | So what will he do next? |
| 1:51.3 | Simon, as the only male in the room here, |
... |
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