Intech Discusses Active vs. Passive: The Age-Old Debate
Many plan sponsors have moved away from active management towards passive investments as a strategy for managing and eliminating underperformance risk. However, plans need alpha, and investing in strategies that track the market (market capitalization-weighted indexes) doesn't offer the opportunity to realize that much-needed excess return. History has shown that active-management results tend to be cyclical and past periods of underperformance were followed by strong reversals. So, should we rethink active investing as a source of capturing the growth potential of stocks while guarding against downside risk? This presentation will demonstrate how active volatility management could provide the best of active and passive investing.