A low interest rate and nominal return environment
We have many different approaches with regards to our fund research list, all of which have varying degrees of active share and differing regional, country, sector and yield exposure..
We are willing to a pay a premium for managers that display these high-quality characteristics as we can understand the environments in which they will perform (helping the allocation process) and we believe they have an increased chance of converting their active share into meeting our investment requirements.
Looking ahead, we are likely to remain in a low interest rate and nominal return environment for the medium to long term. While some investors will accept an ETF-based approach, the majority of investors will be hungry for greater returns than the market can offer. If you are in this camp, higher active share funds are the route to take.
