Fund flows out of passive ETF strategies may signal changing investor preferences
Active managers have the ability to adapt more quickly, but track record still uneven
Add BT as a preferred source
Jude Chan
EXCHANGE traded funds (ETFs) have been a favoured vehicle for passive investors seeking a low-cost method of buying into a broad basket of equities. But in extreme periods of market volatility – such as the current environment in which markets are being roiled by fears of stagflation and rocketing interest rates even as geopolitical tensions simmer – is it time for actively managed funds to shine?
“We may be at a tipping point,” said Stephen Dover, chief market strategist and head of Franklin Templeton Institute.
After enjoying decades of declining interest rates, generally tepid inflation, and increased global integration of supply chains, labour markets and capital markets, Dover noted that investors are now facing a rapidly changing climate.
TRENDING NOW
Father-and-son duo Raj Kumar and Kishin in exclusive due diligence to buy Scotts Square
When every phone becomes a satellite phone, what happens to Asia’s telcos?
Koh Brothers Eco Engineering faces up to S$57.6 million in potential legal liabilities
Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry
