The Active Advantage
Delivering an active advantage
With markets shifting and returns becoming harder to achieve, it’s critical for investors to know what they own, why they own it and how it contributes to their targeted goals.
MARKETS HAVE CHANGED
INVESTOR EXPECTATIONS HAVEN’T
Return estimates for a balanced portfolio have declined in recent years.
WHY MIGHT THE FUTURE BE DIFFERENT FROM THE PAST?
FIXED INCOME INVESTING IS MORE COMPLEX
Investors need to be more aware of their fixed income investments as yields decline and duration increases.
Bloomberg Barclays US Aggregate Bond Index
RECENT EQUITY OUTPERFORMANCE
This has influenced investor expectations even though markets may be heading towards an inflection point.
S&P 500 Price Index
THREE TENETS TO BUILD STRONGER PORTFOLIOS
Understand desired outcomes
Construct the optimal portfolio
Know what you own
Today we are in a late-cycle environment, where return expectations are fading and new tactics and approaches may be needed. We believe that investors should never lose sight of the power of three return drivers—diversified portfolio construction, tactical investing and manager selection—to reach their ultimate goals.