Over the last decade or so roaring equity markets seem to have challenged active management to its very core. Contrastingly, the recent market downturn may offer skilled active managers an opportunity to outperform.
At heart, most investors recognise that recent conditions prove the importance of dynamic portfolio management and maintaining the ability to actively manage your allocation to equity markets. But huge flows into passive management and ensuing fee pressure on active managers are all signs that investors have had enough. So why is this? And importantly, why have active managers been left behind?
This trend has caused some to wonder whether active managers still have a role to play in equity portfolios.
This WTW paper examines the renewed relevance and advantages of active equity management in today’s market environment. It highlights the benefits of active strategies, key trends, and factors driving their resurgence.
