Investor opinion swings to active management

A majority of investors think the market environment is favourable to active management, research has found.

Over 60% of a sample said actives would provide better risk-adjusted returns than passive investments in an environment where nearly 70% of the investors were concerned about geopolitical risk.

Natixis Global Asset Management surveyed decision makers at 500 institutional investment firms and found that while there were still concerns over fees and closet-indexers, over three-quarters of respondents said they were willing to pay a higher fee for potential outperformance of an active manager.

Institutions predicted allocations to passive products to fall from 43% last year to 34%.

The survey found that volatility topped the list of concerns for investors and that, as well as geopolitical risk, there were also concerns about the US election result and the outlook for interest rates.

Investors also expected emerging markets to perform well in 2017 and viewed US stocks and medium-long term bonds as areas for potential disappointment.

©2016 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST