If you’re a Financial Advisor, you probably champion a preferred investment philosophy – active or passive. Though when it comes to having the ‘investment discussion’ with clients, do you really understand how indices work? How often they’re rebalanced? Or how to accurately measure an ETF’s performance?
Enter Stuart Magrath (LinkedIn:stuart-magrath-9b6a147/). He’s the Head of Channel Management for the S&P Dow Jones Indices (a business unit within S&P Global) who works with Financial Advisors, educating them on how to incorporate a strong passive investment methodology in their service model.
In this insightful episode, you’ll learn:
11:54 – Stuart’s professional career with S&P Dow Indices and whether he thinks there’s no such thing (really) as passive investing
14:38 – The S&P ASX Methodology and where you can learn more about it
15:50 – Does passive investing trump active and what is the SPIVA report?
18:00 – What is the ‘Persistence of Active Funds Report’?
26:16 – How Stuart and his team are working with Financial Advisors
27:45 –What U.S. Advisors are currently doing in the ETF space vs Australia
31:05 – Can Advisors in Australia create their own ETF? How can they do it?
48:08 – Three things that make ETFS a good vehicle for Advisors and clients
S&P Dow Jones Indices – https://au.spindices.com/
SPIVA® Australia Scorecard (Mid-Year 2018) – https://www.xyadviser.com/wp-content/uploads/2019/01/spiva-australia-mid-year-2018.pdf
Persistence of Australian Active Funds Report (Mid-Year 2018) – https://www.xyadviser.com/wp-content/uploads/2019/01/research-persistence-of-australian-active-funds-september-2018.pdf
XY Adviser Online Training Platform – https://www.xyadviser.com
This podcast is proudly supported by Netwealth (www.netwealth.com.au), an ASX listed company ranked #1 for overall platform functionality and user satisfaction by Investment Trends for the past three years.
Netwealth understands that the Financial Advice landscape is changing and is providing market leading technology to help you explore new perspectives and realise new efficiencies. Through excellent customer service and expertise, Netwealth are working with XY Advisers to innovate and drive Financial Advice forward.
S&P Dow Jones Indices LLC, S&P, Dow Jones and their respective affiliates (“S&P Dow Jones Indices”) and their third party licensors makes no representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and S&P Dow Jones Indices and its third party licensors shall have no liability for any errors, omissions, or interruptions of any index or the data included therein. Past performance of an index is not an indication or guarantee of future results. Some of the information contained within this podcast or video may represent hypothetical historical performance. Any back-tested information contains inherent limitations and may not result in performance commensurate with the back-test returns shown.
Except for certain custom index calculation services, all information provided by S&P Dow Jones Indices is general in nature and not tailored to the needs of any person, entity or group of persons. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties and providing custom calculation services. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments offered by third parties that are based on that index. S&P Dow Jones Indices does not sponsor, endorse, sell, promote or manage any investment fund or other investment product or vehicle that seeks to provide an investment return based on the performance of any index. S&P Dow Jones Indices LLC is not an investment or tax advisor. S&P Dow Jones Indices makes no representation regarding the advisability of investing in any such investment fund or other investment product or vehicle. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. S&P Global keeps certain activities of its various divisions and business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain divisions and business units of S&P Global may have information that is not available to other business units. S&P Global has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. Please see the Performance Disclosure at http://www.spindices.com/regulatory-affairs-disclaimers/ for more information regarding the inherent limitations associated with back-tested and/or hypothetical performance.”