Sa­trix

Finweek English Edition - - INVESTMENT -

Iat­tended an as­set man­ager pre­sen­ta­tion a few months ago where a fel­low f inan­cial ad­viser wanted to know from the man­ager why they were not do­ing more in the me­dia to pro­mote ac­tive man­age­ment over pas­sive man­age­ment. He noted that ev­ery time he read a fi­nan­cial pub­li­ca­tion or web­site, there was an ar­ti­cle about how pas­sive man­age­ment was bet­ter than ac­tive man­age­ment, and that he was get­ting an in­creas­ing num­ber of queries about pas­sive man­age­ment from clients.

I found it in­ter­est­ing that this par­tic­u­lar ad­viser felt that it was his re­spon­si­bil­ity to de­fend ac­tive man­age­ment. He seemed a bit irked with me when I later men­tioned to him over snacks that we were us­ing ac­tive ve and pas­sive strate­gies in client portfolios. Our view w is that both strate­gies have some­thing of value to of­fer fer clients and there­fore we should be us­ing both. We see ac­tive man­agers as of­fer­ing ffer­ing bet­ter risk man­age­ment ge­ment pos­si­bil­i­ties as well as t he prospect ct of higher-thann­mar­ket re­turns ns over time while e pas­sive man­age­ment of­fers f an­tas­tic cost t mit­i­ga­tion pos­si­bil­i­ties. Our clients need all l

Craig Gra­didge

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