Australian Retirement Trust, the country’s second-largest superannuation fund, is sticking with index investing because it says picking the winners and losses of the sharemarket is “near impossible”.
Speaking at the ISDA conference in Sydney, ART’s head of investment strategy Andrew Fisher, said the extreme market uncertainty with inflation meant that his team was taking a more conservative approach to investing.
Australian Retirement Trust’s Andrew Fisher: “Our high conviction in the index is an important core part of the portfolio because we’re just not 100 per cent sure where this AI goes”. Joe Ruckli
“We are fairly staunch supporters of index investment in our portfolios. It’s one of the most successful things we’ve done for the past three years,” he said on Tuesday.
His comments echo that of AustralianSuper’s chief investment officer Mark Delaney who told the CFA Institute last week that active managers needed to adjust to a new investing environment that is likely dominated by passive fund flows.
“A lot of people are in the profession of making money through active management but most of the time it’s been an unsuccessful activity,” Delaney said. “It’s a real moment for the investment industry as to how it copes.”
Source: https://www.afr.com/markets/equity-markets/art-says-its-sticking-with-index-investing-over-stock-pickers-20251021-p5n43w