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Picture: 123RF/PERFECTPIXELSHUNTER
Picture: 123RF/PERFECTPIXELSHUNTER

Passive investments and tracking indices are the focus of this edition of Business Day Spotlight. Host Mudiwa Gavaza is joined by Daniel dos Passos, senior portfolio manager at RMB Indexation. 

Dos Passos and his team help to manage funds and investment products that are linked to indexation such as ETFs. 

ETFs and other passive forms of investing have gained in popularity in recent decades. Popularised by US fund manager Vanguard, founded by businessman John C Bogle, ETFs are a type of security that can track an index, sector, commodity or other assets. These securities can be bought and sold on the stock exchange like any other stock.

Join the discussion: 

A big part of the discussion centres on the realities of active versus passive investment. 

Dos Passos says many investments that appear to be passive actually require active participation to be successful. 

“Being an active manager is difficult, especially in volatile markets and a highly competitive landscape. The various skill sets of active managers can be varied and highly specialised,” he says.  

In essence, the decision to invest in a passive strategy that looks to track an index can be a very active decision.

Topics of discussion include active versus passive investment, FirstRand’s use of indexation products, the state of the market, alternative investments, and an outlook for the sector. 

Business Day Spotlight is a MultimediaLIVE Production. 

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