Door Henk Kras
At Stoic, we've known for years that (ultra-)passive investing yields higher returns than active investing. But now it's finally happening: APG, the Netherlands' largest pension fund, is also opting for passive investing. This is reported in this article in today's FD.
The Netherlands' largest pension fund manager, APG, is reversing its longstanding policy of carefully selecting all investments in-house. The pension giant, which manages over €600 billion, will for the first time simply track indices when investing a small portion of its assets.
In the article we read:
For years, asset managers tried to outperform the market average by selecting precisely the right stocks after extensive research. But the costs of this form of investing, also known as active investing, are higher than blindly investing in all the stocks in a stock market index, such as the AEX or the S&P 500.
Better to turn back halfway than to go completely astray. After all, why gamble on the stock market when you can choose the certainty that the global economy is always growing? By investing passively—or better yet, ultra-passively or stoically—APG is choosing certainty and a better return. It's about time.
Door Freddy Forger
