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Active managers set to benefit from volatility

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High levels of market volatility coupled with low yields have created a prime environment for actively managed products, according to Natixis Global Asset Management.

A recent survey conducted by the investment firm has found 79 per cent of fund buyers prefer active managers and alternative investments when looking for alpha in the currently volatile market.

The survey found geopolitical events, interest rates and fears around Chinese markets were the three biggest predicted sources of volatility accounting for 67 per cent, 49 per cent and 36 per cent of respondents’ concerns respectively.

Natixis said the low-yielding environment “tops the list of risk management concerns” at 77 per cent.

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“Professional buyers believe that higher levels of market volatility are likely to result in greater dispersion in equity returns,” the company said.

“Ninety-five per cent of those surveyed said they would choose active management over passive investments for generating alpha, while active management is also the preferred route to gain exposure to non-correlated asset classes 74 per cent and emerging markets 77 per cent.”

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