In recent years technology has caused advances in nearly every industry, particularly stock market investing and trading. Such a large percentage of funds managed in Australia are based on traditional tried and true approaches with tweaks or automation applied. This is all well and good if the intention is to secretly hug the benchmark index.
However, most index following strategies are not adaptive enough to cope when market risk becomes widespread and nearly every asset class suffers. Importantly risk is not addressed in ways that are relevant to the market we’ve seen in recent years, that is the 56% ASX drawdown in 2008.
If an investment plan is to be anything other than purely passive (and that is fine if that is your investing plan), an investor should seek out alternate and better options for their investments. This is especially so if the fees they are being charged are much more than minimal.