What does active management look like in the modern era? There are many ways to assess how active a manager actually is – from comparing their active share (or common holdings) or sector over/underweights versus the index, or the turnover rate of  their underlying  holdings, to name a few.

Recently, we wrote about the return a long-term investor might expect to earn buying Australian listed equities at today’s prices. The note, which can be found here, concluded that returns in the region of 7. 5-8 per cent might be a reasonable estimate – somewhat lower than the returns earned in the past.