Active Strategies Still Dominate


    Actively managed strategies continue to dominate investment portfolios and confidence in active management remains strong, says the ‘2016 MFS Active Management Sentiment’ study. “Clearly, many of the alternatives to actively managed strategies have gained traction in recent years, but professional investors have by no means turned away from active,” says Carol Geremia, co-head of global distribution and president of MFS Institutional Advisors, Inc. “We continue to see a strong bias toward active management today and the survey shows this trend should continue, especially with many investors worried about increased market volatility in the coming years.” Respondents, indicate that protecting capital in down markets is one of the most important attributes when considering an active manager and that active management offers superior risk management controls over passive investment options. They also believe actively managed strategies are the best way to mitigate downside risk in a portfolio during a bear market.