Passive not the easy option
Clayton Coplestone, of Heathcote Investment Partners, told Good Returns yesterday it would be increasingly difficult for New Zealand advisers who subscribed to a passive approach to justify their ongoing presence because consumers would be attracted by lower-cost roboadvisers.
Sam Stanley, of NZX, said good advisers would recommend the best product for a client depending on their risk appetite and stage of life.
“Passive investments are seen as a lower cost alternative and a safe pair of hands because you’re getting the performance of the index. Active investment has the potential to outperform the index and some investors have that risk appetite and are happy to put a percentage into something with the potential to outperform, others are happy to have the return of the index,” he said.
He said it was unfair to say that adviser who opted for passive investments were delivering less for their clients.
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