Episode 27: Why it is hard for active managers to outperform


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Dec 06 2023 28 mins  

Craig Lazzara, CFA is Managing Director and Emeritus Global Head of the Index Investment Strategy Group at S&P Dow Jones Index based in the USA and spoke with IMAP during his time in Australia

  • Craig spoke to S&P DJI research showing that index investors have an above-average chance of achieving above-average investment results.
  • He debates his view that most active managers under-perform most of the time, with any out-performance tending to be temporary.
  • The effect of transaction costs contributing to the net performance difficulties for active investment management
  • The use of wider dispersion across assets as a way to measure the potential value of stock selection ability to construct an index-beating portfolio

Moderated by David McDonald, CFA of IMAP