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  • MJG September 2016
Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Lipper: Active, Passive or Smart Beta: Who’s Winning? : Video & Test

FYI: As markets have grown steadily more efficient in recent decades, it has become more difficult – and expensive – for fund managers to deliver excess returns relative to benchmarks, or “alpha”.

Even though investment fund flows into passive strategies have accelerated steadily in recent years, active strategies still account for fully 70% of the $15 trillion in U.S. mutual funds. But active and passive are not the only choices. We are also seeing a booming trade in “smart beta” – an imprecisely defined cluster of rules-based strategies that avoid traditional cap-weighted index construction and seek profits amid market factors and inefficiencies
Regards,
Ted
http://lipperalpha.financial.thomsonreuters.com/2016/09/active-passive-and-smart-beta-whos-winning/?elq=6a3fe31c696445ed923814b3e87dbf10&elqCampaignId=166&elqTrackId=CAAB29B325AC713511E713F32E02F308&elqaid=1815&elqat=1&utm_campaign=Newsletter_LipperAlphaInsight_FundInsightsWeeklyUpdate&utm_content=Newsletter_FundsWeekly_September20&utm_medium=email&utm_source=Eloqua

Comments

  • Hi Ted,

    Thank you for posting a Link to this video. The assembled panel is certainly manned by elite members from the professional investment community. They are representative of heavy weight firepower in that community.

    It is a reasonable expectation that these insider Giants might offer some useable tips for the amateur investor that were off the conventional wisdom. Well, I was disappointed. These experts only offered the conventional, conservative investment axioms. There were no shocks and no surprises. A very rookie investor might benefi from such a presentation, but I suspect most MFOers understand and practice the principles summarized by this seasoned, august group.

    Controlling costs shouldn't surprise anyone. The fact that momentum investors are at high risk and suffer when momentum changes direction should not shock anyone. Yet I was encouraged by the presentation because it served to reinforce many of the investment principles that I apply (at least most of the time). It served as an atta-boy for me.

    I encourage MFOers to give the video a look-see.

    Best Regards.
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