Active vs Passive Investing

02/28/24 • 36 min

Wealth And Toil - An Australian Investment Podcast

On today's episode, hosts Luke Laretive and Dylan Pargiter Green discuss active vs passive investing with special guest Daniel Palmer.

Key points include;

The value of active management, especially during market downturns.
A debate on active vs. passive investment strategies and common misconceptions.
Insights on market trends, with a focus on NVIDIA's growth and AI investment implications.
Analysis of the Australian stock market, global indices, and the Chinese economy's potential.
Discussion on aligning investments with clients' goals, risk tolerance, and investment horizons.
Myths around active management and the importance of long-term investment perspectives.
The significance of financial advisors in guiding clients through market fluctuations.
Fee structures, investment advice value, and aligning fund managers' incentives with investors'.
Advocacy for transparency and evaluating investment performance based on after-fee returns.

General Advice Warning: This podcast is intended and contains general information on financial strategies, investments, and products only. Whilst Luke and Dylan are both licenced Financial Advisors, we don’t know your personal circumstances, goals or objectives. We highly recommend that you reach out to your Financial Advisor or investment professional to discuss any of the topics we have covered today before taking action.

Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:

https://senecafs.com.au/

https://www.boldwealth.com.au/

Hosted on Acast. See acast.com/privacy for more information.

On today's episode, hosts Luke Laretive and Dylan Pargiter Green discuss active vs passive investing with special guest Daniel Palmer.

Key points include;

The value of active management, especially during market downturns.
A debate on active vs. passive investment strategies and common misconceptions.
Insights on market trends, with a focus on NVIDIA's growth and AI investment implications.
Analysis of the Australian stock market, global indices, and the Chinese economy's potential.
Discussion on aligning investments with clients' goals, risk tolerance, and investment horizons.
Myths around active management and the importance of long-term investment perspectives.
The significance of financial advisors in guiding clients through market fluctuations.
Fee structures, investment advice value, and aligning fund managers' incentives with investors'.
Advocacy for transparency and evaluating investment performance based on after-fee returns.

Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:

https://senecafs.com.au/

https://www.boldwealth.com.au/

Hosted on Acast. See acast.com/privacy for more information.

Previous Episode

Property Stocks ASX:GMG, CHC, DXS, PXA, AFG

In this episode of "Wealth and Toil," hosts Luke Laretive and Dylan Pargiter-Green, along with guest Ben Richards from Seneca Financial Solutions, discuss financial strategies with a focus on property investments. They explore alternatives to direct property ownership, such as Real Estate Investment Trusts (REITs), property technology platforms, and financial services in the property sector, highlighting opportunities for investors with various levels of capital.

Key investment opportunities discussed include:

Goodman Group (GMG): An industrial property group benefiting from e-commerce, praised for its strategic locations and founder-led approach.

Charter Hall Group (CHC): Offers a diversified portfolio with a balance of growth and value, well-positioned for shifts in interest rates.

Dexus (DXS): Specialises in premium office spaces, debunking the myth that office spaces are losing value.

PEXA Group Limited (PXA): A digital conveyancing platform with a dominant Australian market share and growth potential in the UK.

Australian Finance Group (AFG): A mortgage broker and aggregator with a strong dividend yield and growth prospects.

Ingenia Communities Group (INA): Focuses on lifestyle communities for retirees, offering a recurring revenue model through leasing.

Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:

https://senecafs.com.au/

https://www.boldwealth.com.au/

Hosted on Acast. See acast.com/privacy for more information.

Next Episode

How to select a fund manager

In this episode of "Wealth and Toil," hosts Luke Laretive and Dylan Pargiter-Green discuss the importance of asset allocation in investment portfolios, particularly focusing on international equities.

Asset allocation is crucial for balancing risk and return according to an investor's profile and goals. Key points include:

Discussion on Asset Allocation:

Asset allocation involves diversifying investments across various asset classes to manage risk and potential returns.

The discussion differentiates between growth (equities, listed property) and defensive assets (bonds), emphasising the role of asset allocation in achieving long-term financial goals.

For younger investors, growth assets are preferred due to their potential for higher returns over a longer investment horizon.

Proper diversification is highlighted as essential, not just in terms of quantity but in aligning with one’s risk profile and investment objectives.

Focus on International Equities:

Many investors overlook the benefits and complexities of investing in international equities.

Utilising a multi-manager approach to international investing, which can offer a diversified exposure to global markets and potentially higher returns.

Challenges include different regulatory environments, language barriers, and the need for specialised knowledge.

It's important to select managers with specific expertise in international markets and a proven track record of adapting to changing market conditions.

Case Study on Asset Allocation:

Two fund managers specialising in emerging markets, comparing their strategies, holdings, and performance.

One manager focuses on Asian markets with top holdings in sectors like technology and consumer goods, while the other has a broader emerging market focus, including investments in companies from India, Brazil, and the technology sector.

Performance analysis shows the importance of not chasing short-term returns and the value of a strategic, long-term approach to asset allocation.

Our full disclosure, copies of our financial services guides and additional information about Seneca Financial Solutions and Bold Wealth can be found below:

https://senecafs.com.au/

https://www.boldwealth.com.au/

Hosted on Acast. See acast.com/privacy for more information.