Passive investing

Jason Orthman

Most broad-based equity indices around the world predominately comprise mature, old-world industrial businesses, highly geared companies including banks, low quality commodity-based businesses, capital intensive businesses and speculative stocks. For many of these companies the long-term return on capital and organic revenue growth outlook is modest at best. This low-quality equity... Show More

Patrick Poke

It’s been nearly six months since Marks’ last memo. In the absence of any major shift in global markets, he has taken the opportunity to discuss a more ‘big picture’ issue – the removal of human beings from the investment process. This comes in three main forms; passive or index... Show More

This week Livewire attended the ‘Better Manage your Wealth’ seminar, hosted by Market Matters. The event featured talks by a number of speakers including James Gerrish of Shaw Stockbroking, and Charlie Aitken of AIM. Here’s a wrap on Charlie’s current views on 'the good, the bad, and the ugly'... Show More

Christopher Joye

In The Australian Financial Review I wade into to the contentious "active versus passive" investing debate and argue that "buying a “passive” or “indexed” fund is lobotomised investing predicated on the beliefs that: the market is smarter than you are; investors are systematically rational; assets are always properly valued with... Show More

Over the last 40 years, investors have enjoyed a golden era, able to generate returns of close to 7.50% p.a. in investment grade credit, and over 10% p.a. in equities, with this historical outperformance driven by a handful of factors including rising debt, huge increases in female labour force participation,... Show More

Perpetual Equity Investment Company

Whether or not active managers add value after fees, over the full economic cycle, has been a widely contested topic in investment circles for many decades. However, as we illustrate in the report below, the fact is that active management works in Australia. The average active manager surveyed outperformed the... Show More