Australian Finance Podcast Our checklist for choosing an active investment
9 snips
Oct 30, 2024 Mitchell Sneddon, Head of Funds Management at Rask, shares his insights on navigating active investment strategies. He presents a practical checklist for selecting active managers, including evaluating fees, understanding fund manager backgrounds, and assessing performance. The discussion also delves into the importance of combining active and passive strategies for effective investing. Throughout, Mitchell emphasizes the value of long-term thinking over short-term decisions, empowering listeners with essential knowledge for confident investing.
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Chapters
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Episode notes
Clarify Investment Purpose
- First, clarify your investment purpose and determine if active management suits your portfolio segment.
- Choose active only if you expect it to outperform passive alternatives for that segment.
Analyze Fees Closely
- Always check management and performance fees before investing actively.
- Avoid funds with unreasonable fees or unclear performance fee structures without a high watermark clause.
Know Your Fund Manager
- Investigate who manages the fund and understand their investment process fully.
- Ensure their values align with yours and they communicate transparently and responsively.