Don’t rely on indexing

Over the long term, investors benefit from investing actively and taking on more risk.

And that’s why Adrian Banner, CEO of INTECH Investment Management, uses a process that’s alternative to an indexing approach. His firm is a sub advisor for the Renaissance U.S. Equity fund.

“The S&P 500 is cap-weighted,” he says, and he doesn’t believe weighting schemes takes into account the behaviour of stocks relative to one another. So he looks beyond index funds.

He also says he focuses on large-cap U.S. equities. “Our hope is that over long periods of time, our mandate provides clear value above an S&P 500 index fund.”

For more, read:

• Alternative indexes complement rather than compete
• New methods for asset allocation
• Understanding beta and alpha

For more on U.S. equities, read:

• Plenty of gas left for U.S. equities
• U.S. markets the place to be
• Strong gains for U.S. equity funds in Canada
• U.S. equities outshine EM peers
• A 7-step approach to security selection
• U.S. stocks continue to shine

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.