Main image: Sonders (right) advocates for a defensive approach in one’s portfolio
SINGAPORE (Dec 10): In the last few years, passive fund management has become increasingly popular among investors, as its returns have often outperformed those of active investing. One reason
for this outperformance can be attributed to the ultra-loose monetary policy environment in the aftermath of the global financial crisis in 2008.
But, now, as the US Federal Reserve is expected to continue to normalise interest rates and reverse its asset-purchase programme, passive management may no longer yield attractive returns. Instead, such opportunities may lie with active investing again, according to Liz Ann Sonders, chief investment strategist at Charles Schwab.
