Invest
Why it's time to forget 'active versus passive'
The endless debate between indexing and active management is the investment community's version of the 'climate wars' being waged in politics, says QIC – and it is just as unproductive.
Why it's time to forget 'active versus passive'
The endless debate between indexing and active management is the investment community's version of the 'climate wars' being waged in politics, says QIC – and it is just as unproductive.
Australian institutional investment firm QIC has weighed into the perennial 'active versus passive debate' in investment circles, likening the argument to the 'climate wars' in federal politics.
QIC, a primarily active fund manager servicing super funds and other institutional investors, argued that active and passive strategies are complementary rather than "at logger-heads".
In a new paper titled Active management: skill, breadth and flexibility drives outperformance across investment cycles, QIC said investors should consider changing market conditions when selecting investment strategies.
The paper also pointed out that active investing is more about quality than quantity, and fixed income active management rewards good management by companies.
QIC director for research and strategy Katrina King said, "We are passionate advocates for active investing, but that doesn’t mean that we turn up our noses at passive investing."
"It does mean, though, that based on findings from decades of investment research, there is compelling evidence to support the proposition that markets go through periods of inefficiency where they vary from fundamental value.
"By doing so, they create opportunities for active investors to outperform benchmarks by intelligently exploiting desired risks and avoiding undesired ones," Ms King said.
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more
Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more
Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more
Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more
Stock market
China's travel and spending surpass pre-pandemic levels, sparking optimism on stock markets
The recent report indicates that Chinese consumers have been travelling and spending more than they did in the same period of 2019, marking a positive turnaround for the Chinese economy. Read more
Stock market
US inflation data sends shockwaves through financial markets
Yesterday, a new set of inflation data from the United States sent tremors through the financial markets, as it came in stronger than anticipated. Read more
Stock market
State Street boosts global ETF operations with enhanced API technology
State Street Corporation has recently announced a significant upgrade to its Fund Connect ETF portal by enhancing the Application Programming Interface (API) capabilities, extending its services to ...Read more
Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more
Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more
Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more
Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more
Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more
Stock market
China's travel and spending surpass pre-pandemic levels, sparking optimism on stock markets
The recent report indicates that Chinese consumers have been travelling and spending more than they did in the same period of 2019, marking a positive turnaround for the Chinese economy. Read more
Stock market
US inflation data sends shockwaves through financial markets
Yesterday, a new set of inflation data from the United States sent tremors through the financial markets, as it came in stronger than anticipated. Read more
Stock market
State Street boosts global ETF operations with enhanced API technology
State Street Corporation has recently announced a significant upgrade to its Fund Connect ETF portal by enhancing the Application Programming Interface (API) capabilities, extending its services to ...Read more