Active managers defend relevance in a bad year

Singapore

IN A disastrous year where most actively managed equity funds performed poorly relative to their benchmarks, asset managers are citing various reasons why they are still relevant. They include the need to allocate capital in an ethical and sustainable manner, the flexibility active funds can have or the advisory roles managers can play.

Andreas Utermann, CEO and global chief investment officer of Allianz Global Investors, said in a September conference that fund managers play an important role in deciding which companies to allocate capital to, as they can invest according to environmental, social and governance (ESG) standards. "If you don't have a view as to which companies act responsibly within society, which companies have sustainable business models, you can't effectively allocate capital," he said.