ICR324: Niels Jensen, The End of Indexing

What's worked before won't always work in the future. In the world of investing, we often hear the risk warning that past performance is not necessarily a guide to future returns.

My guest on the show today has written an excellent new book which takes a look into the future for investors, predicting six structural mega-trends that threaten passive investing.

Niels Jensen has over 30 years of investment banking and investment management experience.

He started his career in Copenhagen in 1984 before moving to London in 1986 to join a firm that became Lehman Brothers. Niels subsequently worked for Goldman Sachs as its co-head of US equity in Europe, then managed Oppenheimer's European business. He rejoined Lehman Brothers to head up European Wealth Management in 1999, and went on to become founder of Absolute Return Partners in 2002, where he is now Chief Investment Officer.

His new book presents a different vision of the future for investors; one where index tracking strategies are poorly suited.

In The End of Indexing, he identifies six structural mega-trends that are set to disrupt investors around the globe. We get into those six structural mega-trends in our conversation today, taking a deeper dive into a couple of them in particular.

Neils says that as a new investment approach is called for, The End of Indexing provides investors with a guide to the challenging environment ahead and a warning about the future decline of index-tracking.

Here's my conversation with Niels Jensen, author of The End of Indexing, in episode 324 of Informed Choice Radio.