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What are the implications of shifting investment approaches?

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18 August 2025 by Keith Ford, ifa

Article link: https://www.ifa.com.au/news/36113-what-are-the-implications-of-shifting-investment-approaches

The shift towards passive investment strategies in recent years has been “modest”, according to a new report, however the changing dynamics of advisers’ investment approach has implications across the entirety of how firms do business.

The argument over whether active or passive management is the better approach for clients is unlikely to be put to rest any time soon, despite a slight nudge towards passive over the last few years.

According to the latest Adviser Ratings Australian Financial Advice Landscape report, there has been “a modest shift toward passive strategies in recent years”, however, it added that the majority of client portfolios still maintain “significant actively managed components”.


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