The past half-decade’s diversified macro environment has been great for passive investing instruments, but it may give way to less efficient markets and more active strategies, Richardson GMP’s Craig Basinger says in a market note. Basinger says neither active nor passive management is superior, though there are two critical factors that determine which investment style […]
Active managers again fell short of their respective benchmarks in 2016, S&P Dow Jones Indices says in its latest SPIVA Canada scorecard. The SPIVA scorecard found the market’s strong run last year caused a majority of active managers in domestic Canadian equities to underperform their respective benchmarks. Just under one-fifth of Canadian equity funds (17.31%) […]
When active investing is measured against passive investing, the winner is neither or both. Or, it depends how you look at it. In an attempt to declare a winner, research analysis firm Dalbar looked beyond theory and instead measured the impact investments have on investors’ wallets. The research found that, over a shorter term of […]
Agree or disagree?
Active management works over the long term, provided investors can stomach the ups and downs. Otherwise, use indexing, says Jim O’Shaughnessy, Chairman and CEO of O’Shaughnessy Asset Management in Stamford, CT. “You can do significantly better with active investing, but ONLY if you have the psychological make up to stay the course,” writes O’Shaughnessy in […]
Hedge fund managers may find themselves under greater performance pressure
Liquidity is a key vulnerability
“It feels like you’re beating up on advisors,” said one audience member.
This article originally appeared on BenefitsCanada.com. Global institutional investors are expecting to make more asset allocation changes in the next couple of years than they did in 2012 and 2014, according to a new survey by Fidelity Investments. The anticipated shifts include alternative investments, domestic fixed income and cash. Globally, 72% of respondents said they […]
Passively managed products account for one third of U.S. mutual fund assets today—up from 20% four years ago—reflecting a net US$2 trillion shift to passive and away from active management (Chart 1). But questions about this trend’s sustainability, and warnings about its consequences, have arisen. Take, for instance, the note from brokerage firm Sanford C. […]