Australia’s LGS goes active and thrives
Just seven years after restructuring around a passive core in response to the GFC, Australia's $8.2 billion Local Government Super has found confidence and success in active management.
Just seven years after restructuring around a passive core in response to the GFC, Australia's $8.2 billion Local Government Super has found confidence and success in active management.
Prominent CIOs say active management’s place is secure, even as passive strategies surge in popularity. But the two types of strategies aren’t as distinct as in years past.
In a move that differentiates it from the herd, the fund for employees of Ericsson, has added active long-only managers for a concentrated equities portfolio of 30-50 shares, shunning passive.
Warren Buffett says although outstanding managers are invaluable, the net result of hiring professional management is a minus. “More money is made in Wall Street through salesmanship than investment ability”.
Asset Allocation