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Passive Investment

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AREITs are not as passive as you may think

A-REITs are often viewed as passive rental vehicles, but today’s index tells a different story. Development and funds management now dominate earnings, materially increasing volatility and risk for the sector.

Which type of investor are you?

It's so tempting to get lost in the noise and intrigue of financial markets that we can easily forget what type of investor we are. To have any chance of success, it's critical to avoid playing somebody else’s game.

Are we reaching peak passive investment?

Five years ago, the move towards passive investment in the US was obvious, and warranted. But there are compelling reasons to think that the next decade will be a more productive environment for active strategies.

Active or passive ETFs: how do you decide?

Most portfolios will benefit from a mix of passive and active strategies, as there are market conditions where one might do better than the other. ETFs now cover a wide range of structures, not only indexing.

Why active management needs a full cycle

The long bull market allowed passive investing to prosper, but over a whole cycle, companies with better fundamentals will outperform weak ones. The market is finally showing some dispersion.

The paradox of passive investing

The rapid rise in investments into passive vehicles is having a distortive effect on markets as the flows are prone to sudden reversals. The cheap cost may come with a paradoxical result.

Passive investment – an unwitting oxymoron

Making a passive investment requires an active decision, and since index-based funds are structured using market prices, they build in influences of the active factor of price momentum.

The difficulties picking fund manager winners

It's difficult for investors to find active fund managers that consistently outperform the market over multiple periods, and the claim that active managers do better in falling markets also lacks recent evidence.

Your bond questions answered

Cuffelinks reader, James, has some additional questions covering: bonds for capital gain or income, bonds in a growth strategy, passive vs active investing, unconstrained bond funds and duration risk.

What types of people should manage your money?

Different styles of investing are suited to different types of people. Knowing which style is best suited to your character and temperament can make a big difference to your investment outcomes.

Just when my portfolio was set for the long term …

Investment is more art than science, and even an investor who prefers a 'buy and hold' long term strategy will need to adjust the portfolio. When you think your portfolio is finally set, something will happen to test your resolve.

Active versus passive – what about risk?

For any investment strategy, it’s important to consider the risks involved. This simple framework, based on fixed interest funds, can help retail investors assess and understand the risks of investing in index funds.

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The refinery problem: A different kind of energy crisis in 2026

The Strait of Hormuz closure due to US-Iran conflict severely disrupted global energy supply chains. While various emergency measures mitigated the crude impact, the refined product market faces unprecedented stress.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

Div 296 may mean your estate pays tax on assets your beneficiaries never receive

The new super tax, applying from 1 July, introduces more than just a higher rate on large balances. It brings into focus a misalignment between where wealth sits and where the tax on that wealth ultimately falls.

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