Although not all asset management groups have prospered due to regulatory reforms putting pressure on fees and passive investing
eating into market share, many have done well in the past three years.
The phenomenal rise of passive investing
in the form of exchange traded funds in recent years has revolutionised the way capital is allocated across all major asset classes globally.
The passive investing
trend is showing signs of catching on in Europe and Asia, however, even though the magnitude of overall flows is much smaller than in the United States.
A Passive investing
is a financial strategy in which an investor (or a fund manager) invests in line with a pre-determined strategy that doesn't use any element of forecasting.
As you may have heard, investors have swung heavily toward passive investing
and away from active investing over the last few years.
Sara Shores, global head of Smart Beta for BlackRock, commented Our Smart Beta strategies are simply the next step in the 40 year evolution of passive investing
This capital is often meant for active business purposes--not for passive investing
His comments implies, one, understanding of investing landscape, where cost savings passive investing
becomes inevitable in a bias world of active managers, and two, the cross border interest in index/ETF investing with underlying exposure to large capitalisation US market, especially when there is an attractive post purification dividend yield for entities like Malaysia's Hajj Fund, Tabung Hajji.
tv, a new website designed to provide information and opinion about passive investing
and the use of index funds, which automatically track an entire index, usually at a much lower cost than actively managed funds.
Reducing capital gains by adopting a passive investing
Legal & General's unique process of indexation does not fit the traditional idea of passive investing
, as many other index-tracker funds are highly quant-driven.
But his assumption is backed up by a good deal of independent research, which does show that low-cost passive investing
beats active fund management over the long haul.