FYI: Just like an auto manufacturer, every advisor wants a client’s investment portfolio to be a well-oiled machine with the right mix of performance and safety features. Last summer, after seeing countless headlines touting increased passive inflows, I found myself with many unanswered questions. Much of what I was reading just wasn’t adding up. Looking for answers, my colleague Mayank Goradia and I embarked on a research project to look under the hood and see what was driving this in the marketplace.
Our first surprise: much of the research we encountered focused on one asset class—U.S. large-cap equity—with the assumption that the results must be true in every other asset class as well. But, was that conclusion justified? We started looking at studies with a cross-asset class perspective, which led us to several imperatives for advisors determining an active/passive investment strategy.
Regards,
Ted
https://www.fa-mag.com/news/active-and-passive--a-look-under-the-hood-42225.html?print
