The best active managers may soon be looking at a favourable environment for the first time since 2008 , as tailwinds for passive investing begin to slow down . Historically low volatility , the willingness of central banks to invest and high correlations between assets are all likely to be on the wane , setting up an environment where the best stock ##holders should be able to prove their worth . They will , however , have to avoid managing products which " hug " investors , while also dealing with passive investments on price and value .
The best active managers may soon be looking at a favourable environment for the first time since 2008, as tailwinds for passive investing begin to slow down. Historically low volatility, the willingness of central banks to intervene and high correlations between assets are all said to be on the wane, opening up an environment where the best stock pickers should be able to prove their worth. They will, however, have to avoid managing products which "hug" indices, while also competing with passive investments on price and value.