S&P’s SPIVA (index versus active) data now spans 15 years of data on the performance of Australian managed funds. This study illuminates returns from sectors and styles, and investment lessons learned from it.
Tag Archives | benchmarks
Exposure to bonds in the last few decades has delivered strong returns, but the risks in simply buying a bond index are acute and investors should consider different ways of investing in bonds.
What factors are a guide to a long term successful investment experience in small caps given the sector has struggled to deliver decent returns?
It’s difficult for investors to find active fund managers that consistently outperform the market over multiple periods, and the claim that active managers do better in falling markets also lacks recent evidence.
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?
The Bank Bill Swap Rate (BBSW) is an important metric in many markets. It’s used as the benchmark for hybrids, FRNs and billions of dollars of loans and bonds.
Index and asset allocation specialists, Research Affiliates, have tested a theory they call the ‘Rip van Winkle’ approach. It uses a cap-weighted index portfolio drawing the data from 20 years earlier to prove a point.
In a continuation of the ‘active vs passive’ debate, there are many reasons why a good active manager should be worth the extra cost. What should the manager be doing to deliver results?
The empirical evidence in the active v passive investing debate favours index in most asset classes, but there’s a role for mixing the techniques if good managers can be identified – although that’s not easy.
Australia’s economy has long had to cope with structural change, which hasn’t stopped quality companies from generating wealth for investors. But with increasing complexity, picking winners and losers will become harder.
The SPIVA Australia Scorecard measures the performance of actively-managed funds compared with the relevant S&P indexes. Results from the most recent Scorecard are not pretty for active managers.
Australian index-based equity portfolios are often concentrated by company and sector. Some other goal-based strategies might be a better fit for your investments but clients and advisers will need to drive this change.
A combination of confidence in one’s own ability to read the market and the excellent rewards for correct predictions encourages many investors to employ tactical asset allocation strategies. Is it worth doing?
For any investment strategy, it’s important to consider the risks involved. This simple framework, based on fixed interest funds, can help retail investors assess and understand the risks of investing in index funds.
There’s an interesting history of state and federal government finances and innovative merchant bankers behind the UBS bond index often found in annual statements from fund managers.
ASIC’s new definition of ‘hedge funds’ will have important ramifications for many industry participants, and may even affect PI insurance costs.