Sentences with phrase «for active managers»

The current environment is seen as one that could offer better opportunity for active managers.

The large growth category has also been particularly difficult for active managers.

Your assumption here is that skill matters more in less liquid asset classes, so it should be easier for active managers to beat their indexes.

Most stocks declined, and that created a tough environment for active managers to make money.

But investors, both individual and professional, often make it even harder for active managers to outperform.

Do you think that in and of itself — more people going to passive strategies — could open up more potential for active managers and more anomalies?

Importantly, factor indices make life more challenging for active managers.

All four apply even for active managers with genuine stock selection skill.

Then, he believes investors must hunt for the active managers they like.

Why that won't change How should we define success for active managers?

Of course, these investment ideas are not novel — many have been part of the stock selection framework for active managers for decades.

Too often it becomes nearly impossible for an active manager to overcome all of the increased costs associated with high turnover.

In order for active managers to have a reasonable chance of beating the market, they have to have portfolios that are significantly different than the market.

The compounding effect of these fees over 5 year will be very difficult to overcome for any active manager.

As for active managers, they often buy and sell to make it look like they are doing something for clients, when frequently less activity would be in the best interests of clients.

More importantly, for active managers correlation is not the whole story, nor even the most important part of the story.

But it is not the purpose of an index to make that bet, so much as to facilitate that bet for active managers.

And if you can make the case for the active manager, there's nothing wrong with using the actively managed fund.

Every now and then index investing will include blow - ups like this (or miss run - ups), making an easy comparable for the active managers.

Rather than ride it out, they will seek some sort of sanctuary, and that will create opportunities for some active managers.

Large - cap equity is an asset class that is typically considered to be highly efficient and has historically been difficult for active managers to outperform.

The middle period was a strong bull market, the worst environment for active managers, who find it hard to keep up as the indexes charge ahead.

That made it much harder for active managers, who tend to fare better in periods of volatility, to beat the market, he said.

There is only one way for an active manager to beat the inflation - protected indexes: making correct calls on future inflation.

Check here to learn if it will be easier for active managers to outperform the market as investors avoid active funds.

Other things equal, however, lower correlation is better for active managers than higher correlation — especially for a strategy with rapid turnover.

The active management edge is found furthest from the benchmark The key for advisers is weeding through the expansive universe, which starts with looking for active managers who are not simply hugging the benchmark in an overly cautious effort to not get beat by it.

What is true for the Dividend Aristocrats is equally true for other strategy indices and emphatically also true for active managers.

Normally, these conditions might be considered ideal for active managers to perform well, but they actually underperformed in most categories analyzed in the SPIVA Europe Mid-Year 2016 report.

«It was a tough year for active managers because of the outperformance of mega-caps in 2015,» Lee told USA TODAY.

And matters weren't helped much as volatility hovered close to the lowest levels on record, sapping the market of the price swings so crucial for active managers to prove their bonafides.

Since «the market» consists of all investors, and active managers are a big percentage of all investors, it's common sense that the average return for all active managers will be the market return less the average costs of active management.

This morning's Wall Street Journal reports that the contrary view — that low levels of stock market dispersion would make 2014 an especially difficult year for active managers — has been vindicated.

It may take time for Vanguard's index - tracking funds to catch on in China, but he predicted that the appeal of passive investing will grow as the country's markets become more efficient — and thus tougher for active managers to outperform.

Some pros think a bear market will bring about renewed love for active managers because that's where they can prove their worth, by moving assets around instead of only mimicking a losing index.

Intermediate term bond benchmarks are actually one of the easiest ones for active managers to beat:

That date made me think about Bogle's recent advice for active managers.

With that said, let's consider a few suggestions for the active manager who is fretting over the state of their industry:

While volatility created by ETFs might be painful over the short - term through intra-day trading anomalies, it may also create idiosyncratic valuation distortions for active managers to capture.

John Rekenthaler talking about the narrowing spread between the best and worst fund managers still sees some opportunity for active managers under certain circumstances:

Today's Financial Times offered a prominent active manager a chance to argue that such «closet benchmarking» was the reason for active managers» underperformance.

While we think there is an important role for active managers, we noted in this column last month that investors continue to overpay by at least $ 70 billion per year.

While the outflows will be painful for active managers, the survivors will to find it easier to find opportunities in the stocks that are underindexed.

This should lead to more excesses and opportunities for active managers over time.

Cerulli's report, «U.S. Products and Strategies 2016: Identifying Opportunities for Active Management,» examines strategies for active managers; trends in mutual fund share classes and pricing; exchange - traded funds; strategic beta; environmental, social and governance (ESG) and socially responsible investing (SRI); financial advisers» product preferences; the institutional and retail product landscapes; and innovations in target - date funds.