Main

Active Managers Beat the Index in Q3

Posted on November 17, 2008 at 4:19 pm
Filed Under Financial Markets, Financial Planning, Investment Planning, Mutual Funds

There has been a lot of talk surrounding whether to buy into mutual funds or simply invest in the equivalent index.

Recent data was released by the Standard & Poors Indices Versus Active Funds Scorecard (SPIVA) specific to Quarter 3 results in a down market. This report said that over 60% of active Manager’s beat the S&P/TSX index which is a substantial increase over past results. S&P’s Jasmit Bahndal responded by saying “The important thing for investors to take away is not that there are active managers who can beat the benchmark, but that it’s hard to find them”.

Your Take-Away: Finding a great Money Manager can be tough. Never hesitate to ask your Advisor why he or she recommends that specific Manager and always do your own due diligence to ensure you understand as much as possible about the Manager you may be investing with. Issues such as experience, track record, core philosophy and primary holdings are all key to helping you make the right decision.

This is not a black or white issue at all and many beliefs and theories surround this very controversial topic. My thought is that I’m more then happy to leave the big buying and selling decisions to the people who do this every day, all day, then to try and do it myself. However, that’s just my opinion and it’s up to you to decide for yourself.

Until next time, have a Magnificent Monday!

Chris

Bookmark to: