S&P Dow Jones Indices – Is Active Management Active Enough?

Webinar Content provided by S&P Dow Jones Indices | Proud partner of the SMSF Association

Arguably the single biggest trend influencing investment portfolios in recent years and beyond is the shift of assets from active to passive management. Why is this happening? Is it likely to continue? How can SMSFs take advantage of it?

In this session, Craig Lazzara, Managing Director of Index Investment Strategy at S&P Dow Jones Indices will share findings form the award winning S&P Index Vs Active (SPIVA®) Scorecard – de facto global scorekeeper of the active-passive debate, on where and when active managers have and have not outperformed from a global perspective, the opportunity set for outperformance, and risk management in active funds.

  • The persistent underperformance of active managers: most active portfolios underperform their benchmarks most of the time.
  • The “arithmetic of active management” explains why this underperformance occurs
  • It’s likely that active management will become harder in the future, not easier.
  • The growth of the ETF market provides an ideal way for SMSFs to benefit from these trends.

This article is opinion, not advice. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. S&P Dow Jones Indices makes no assurance that investment products based on the index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor, and S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment vehicle.