While it is true that there has been a large shift into lower cost passive strategies, Greenwich Associates doesn’t believe that means active management is dead.
In their recent paper they explore the shift, noting “although investors’ increased appetite for passive investments appears to be secular rather than cyclical, active management will remain a viable and attractive business for the foreseeable future. ” They believe managers who partner with their clients to resolve highly complex situations while touting their specialized insight and /or capabilities in their niche areas, and those that are able to work with their clients to resolve complex challenges quickly and efficiently will succeed. Managers resisting change and sticking to traditional product-centric approaches and failing to present their unique capabilities will not do well according to their findings.
See how active managers can position themselves for future success by observing the strategies currently being used by successful firms in the industry. See how these asset management firms are positioning themselves as experts and thought leaders in their areas of specialty, and the new approaches they’re taking in relationship management. You can find the full paper here.
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