Tag Archives | active management

PX-pencil-3373844__340

How to use factors to tailor your investing

The concept of factor investing has been around for decades and features in many portfolios. A considered and patient use of factors can enhance investment performance but not short term in all market conditions.

A better way to measure Australian small caps investments

A better way to measure Australian small caps

Inefficiencies in the small caps index means outperformance is common but that should not cost 60% more in fees than large caps. Large caps have outperformed small caps over the long term but with significant variability.

active vs passive debate

Let’s refocus the active v passive debate

The active v passive debate has deflected attention from a more important issue, a focus on managing to client goals. Plus active management has suffered relative to passive by the central bank-driven uplift of all assets.

human capital

AI and an intelligent active manager’s odyssey

Most people focus on the threat of passive funds and ETFs to active investment management, but in this seminal paper exclusive to Cuffelinks, Jack Gray warns that Artificial Intelligence has barely scratched the surface.

active fixed interest

Why the times suit active fixed interest

With the 35-year bull market in bonds coming to an end, passive fixed interest portfolios are at the mercy of the index’s high levels of interest rate risk and compositional skew towards low return investments.

active management fees

You get what you don’t pay for

While there is a role for both active and passive investments in portfolios, the impact of relatively small reductions in management fees can compound to large amounts over a lifetime of saving.

alpha beta

The biggest rort of all

Market performance and outperformance can come from many sources, but the main thing to watch for is that you’re not paying high ‘alpha’ fees simply to achieve market ‘beta’ returns.

competing for alpha

Competing for alpha

The term ‘alpha’ may be financial jargon, but for fund managers, it’s the highly sought-after prize for successful active management that justifies fees charged. But how do you select a good manager?

tax-aware

Value of tax-aware investment management

The investment performance of super funds and other investment managers has historically been measured against pre-tax indices. Once tax is taken into account, the return on investments is quite different.

Register for our free weekly newsletter

New registrations receive free copies of our special investment ebooks.