Ep. 65 | The Evolution of Finance and Systematic Investing

Ask a question or send feedbackThis is one of our most important episodes - ever!Predictions feel powerful until they're not.We pull back the curtain on what actually drives long-term investment returns and explore how a systematic, evidence-led approach can help you capture the returns you are owed while avoiding costly traps.Aden and David sit down with Bhanu Singh, CEO of Dimensional Fund Advisors Australia, to trace the real story of modern investing: from Harry Markowitz’s portfolio theory and the birth of clean market data at CRSP to Eugene Fama’s insight that prices embed information. Bhanu explains how research moved beyond CAPM to the Fama-French model, why small and value stocks have higher expected returns, and how profitability adds a sharper lens to selecting resilient companies. The message is clear and practical: start with the global market portfolio, then tilt deliberately toward proven drivers of returns, all while staying diversified and cost aware.We also examine the strengths and limits of index funds. Lower fees and broad exposure are wins, but rigid rules can force trades at bad moments. Along the way, we cut through media noise, address behaviour gaps that derail investors, and highlight how better implementation turns good research into better outcomes.More on Dimensional Fund AdvisorsMore on Fama French Three-Factor ModelThe Purposeful Investor Podcast is a public service provided for Australian investors wanting to make smart decisions with their money, avoid costly mistakes, look after the people they care about, and, have a great life!We draw on over 30 years of experience from David Andrew and the Capital Partners team.For more information on Capital Partners' award winning team, visit capital-partners.com.au. Have a question? Email us [email protected] episode provides general advice only. We do not consider your personal circumstances when we share this information. Always refer to your financial adviser for advice about your personal circumstances. Capital Partners Consulting Pty Ltd AFSL 227148 trading as Capital Partners Private Wealth Advisers ABN 27 086 670 788.