Active and passive strategies: Why two can be better than one in portfolios

clock • 4 min read

Jordan Sriharan, head of collectives research at Thomas Miller Investment, explores the benefits of using active and passive strategies in portfolio construction.

The active versus passive debate continues to generate headlines, with campaigners on both sides making credible arguments. But the benefits of using both in a well-constructed portfolio seem to be mainly overlooked in the discussion. To maintain a steadfast loyalty to one over the other would be to the detriment of clients' portfolios. Simply comparing fund performance to a benchmark can lead to incorrect conclusions, whereas allocating to both active and passive strategies can produce a more efficient outcome, particularly in global equity markets. US active underperformance Mu...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Funds

UK equity funds continued to experience the heaviest outflows of any region, with investors redeeming £1.3bn over the month.

Outflows slow to £137m in October as UK investors gravitate towards safer assets

Investment Association UK fund flows

Valeria Martinez
clock 07 December 2023 • 2 min read
The fund has an investable universe of more than ten sovereign and quasi-sovereign issuers and over 500 corporates across 15 countries.

Amundi unveils Asia income ESG bond fund

Managed by Joevin Teo

Valeria Martinez
clock 07 December 2023 • 2 min read
CEO Ian Simm (pictured) told Investment Week about the firm’s plans to launch a social themes equity strategy earlier this year.

Impax AM launches first Article 9 social equity strategy

'Strong corporate cultures'

Valeria Martinez
clock 05 December 2023 • 2 min read
Trustpilot