brw - information regarding index funds
17/11/05 issue of BRW, page 13;
"In the funds management industry, there are two types of managers: active and index. They are at opposite ends of the spectrum in how they do business. Index funds create a portfolio that passively replicates the returns of the stockmarket index; active funds make independent judgements on stocks in an attempt to outperform the stockmarket.
An index manager trades about 5% of the portfolio a year, and an active manager turns over, on average, 30-40% of the portfolio a year."
I think the index funds have not bought yet (because they do not buy stocks that are not in the index, hence the name "index funds"), but an article in aireview on 5/12/05, suggested that the buying for TTS by funds has already been done, in ABN AMRO's view.
The test of whether that view is accurate or otherwise, will take place after 16/12/05.
Meanwhile, punters should make up their own minds, as we are all gambling with our own money.
TTS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
