Exploring the evolution and the relevance of index investing
In this live-recorded webinar, COO of 1nvest and STANLIB Index Investments, Wehmeyer Ferreira, and the Head of Portfolio Management, Rademeyer Vermaak, share an insightful overview of this much talked about investment approach. They also dive deeper into the index investing spectrum and expand on the relevance of index investing during varying economic cycles.
- Over the past decade, index investments have generated significant attention and flows worldwide, sparking more interest amongst investors
- Index investing spans a broad spectrum from passive index tracking to a systematic and active approach
- Passive solutions offer benefits to investors in that they are simple, cost effective and transparent
- Passive investments aim to match the market, whereby for providing evidence-based solutions, active investors aim to beat the market. This means active managers have the opportunity to outperform in downward cycles, as they are able to switch to more defensive assets.
- Index investing may follow a more active factor-based approach. The value factor is a proven gauge of market sentiment, having underperformed in recent years. Quality and growth factor have performed well in the last 5 years.