What are the implications of shifting investment approaches?
The argument over whether active or passive management is the better approach for clients is unlikely to be put to rest any time soon, despite a slight nudge towards passive over the last few years.
According to the latest Adviser Ratings Australian Financial Advice Landscape report, there has been “a modest shift toward passive strategies in recent years”, however, it added that the majority of client portfolios still maintain “significant actively managed components”.
Over the last 12 months, the report found the proportion of actively managed assets within portfolios fell from 62 per cent to 59 per cent, with a higher proportion of advisers decreasing their usage of actively managed investments than those who…
