I don't there there is a "rise" in passive investing. Its been around for a long time and sure ETFs and index funds may take some market share here and there but its not like its a new thing. BGI had over $1 triilion in ETF FUM when I was working for them in 2007, Vanguard, Dimensional etc have had a big market presence in Australia for many many years now (pre-2000).
Passive investing is the same threat to MFG as it was when FUM went from nil - $100 bill. Will likely be the same for the next $100 bill.
If you read the annual reports and Chair/CEO presentations over the last few years Hamish is clear that FUM growth will be limited from customers and be largely driven by market movements. He is expecting (from memory) about 10% p.a. which should double FUM, on average every 7 years. Of course markets don't move in a straight line so that growth will not neatly fit broker expectations but that's the nature of this investment.
I am happy to hold, get exposure to global markets and benefit from management that seem to genuinely worry as much about customers and shareholders as they do their own bonuses. Maybe I don't benefit this year, maybe not next but I will benefit.
MFG Price at posting:
$32.11 Sentiment: Hold Disclosure: Held
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