47: PineBridge's Michael Kelly - Where to go active and where passive

Multi-manager firm Pinebridge Investments is a partner of Australian pension fund SunSuper and was given the task to write a research paper on how it decided to go active or passive in a particular market. Michael Kelly is Global Head of Multi-Asset at Pinebridge and takes us through the research paper. He also talks about his entry into the investment industry, including playing softball with Alan Greenspan. * Please note that this podcast was recorded before the coronavirus became a pandemic. Overview of Michael Kelly podcast 1:30 Alan Greenspan's firm 3:25 Greenspan in his early days and his love for baseball 7:00 DAA or market timing? A medium term play. 8:00 We look at markets as if they are individual securities 9:00 Can you name some investments that worked out well and some that didn't? 12:00 You asked me very politely to share some of my bloopers 14:00 Isn't interesting that in 2020 we still have crisis orientated monetary policy 16:00 Sunsuper's research task into when to you passive and active 18:00 When to go active and when passive 28:00 Don't fund managers claim they can outperform all of the time? 29:00 You can look forward and see which markets become less efficient 31:00 Increased regulations have made it too expensive for small companies to list 32:00 Do portfolios need to include a bit of private assets to compensate for companies not listing as early? 34:00 Do ESG policies make passive less passive? 36:00 Is divestment really going to change practices at the majority of companies? 38:00 How do you engage with companies? 39:00 When passive investing is no longer a passive experience. 42:00 We are in a 'Hotel California' type of glut: you can check in, but never leave.