INNOVATION IN THE MANAGEMENT OF PASSIVE INVESTMENTS
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INNOVATION IN THE MANAGEMENT OF PASSIVE INVESTMENTS
INNOVATION IN THE MANAGEMENT OF PASSIVE INVESTMENTS
Prescient Asset Management
Q3 of 2023 | 2 years ago
It’s a debate that has raged on for decades – which investment strategy is better: active or passive? Active management allows for the possible outperformance of a benchmark and higher expected returns by taking advantage of manager skill and experience. The potential of excess returns, however, comes at much higher fees. Passive or index managers may argue that the probability of outperformance by active managers over long periods of time is low and that one is better off simply investing in the index at much reduced costs.