An environment supportive of active management

Geopolitical uncertainties, volatility of markets and the risk on interest rates remain the main subjects of concern for investors. These are anticipating a possible increase in volatility, an environment supportive for active management. As a matter of fact, through its important role in the orientation of investments, active management, which generates alpha, is better equipped to face different scenarios than passive strategies. Furthermore precaution is called for with regards to passive management, as the accommodating monetary policies had the effect to standardise equity markets and to remunerate without any distinction lower quality companies as well as companies generating excellent results.

Matching the style and the investment philosophy of IAM, an active management, with the appropriate diversification of the asset allocation, will be essential in this environment.