Is the active versus passive debate still relevant?

ALLOCATION

Stephen Cohen, head of investment strategy & insights EMEA at iShares, examines how this industry discussion has evolved and what the future holds.

It is a time of rapid change in the European investment landscape. Over the last few years, the breakdown in historical asset class correlations and the increased volatility of capital markets has increased the importance of effective asset allocation to many professional investors, as well as providing more opportunities for tactical strategies to add value. These changes in investment markets have been a catalyst to stimulating a greater focus on indexing. In recent years, indexing has grown to account for over 11% of European assets under management, driving the active versus passive ...