How is Six Park different from a traditional managed fund?
Most traditional funds are “actively managed”. This means they focus on trying to “pick winners” (by selecting investments that are expected to outperform) or “time the market” (or try to take advantage of predicted market surges and contractions).
There is a growing body of research – both in Australia and globally – showing that the vast majority of actively managed funds actually fail to outperform their target benchmarks on a consistent and persistent basis. Numerous studies have also shown that investors who try to time the market usually end up with lower returns than those who simply “buy and hold”.
At Six Park, we are advocates of passive investing. Rather than trying to beat or time the market, our focus is on providing our clients with low-cost, broad-based and globally diversified portfolios. We overlay this approach with an engaged, thoughtful and continuous review of asset allocation and risk management strategies. We believe this approach is the best avenue for creating long-term wealth.