We are pleased to release the Verus 2023 Active Management Environment, which can be accessed with the link below. Changing market conditions in recent years continue to suggest a more-attractive environment for active managers to demonstrate skill and add value for investors.
- Greater economic uncertainty around the world, aggressive central bank actions, and rising bond yields have created an environment of greater dispersion in active manager performance.
- Higher dispersion is apparent in the most recent 3-year dataset within the document, which also reflects a larger proportion of active managers outperforming the benchmark relative to prior periods.
- Our analysis continues to illustrate stark differences regarding the relationship between risk and return across asset class universes. In many asset classes, there has been a negative relationship between risk-taking relative to the benchmark and total return. These characteristics may provide helpful context to investors when discussing active management.
We hope that the insights from this unique mathematical approach provide a deeper understanding of active manager behavior and assists investors in their selection process. For first-time readers, an introduction to this research and methodological details can be accessed on our website.
We look forward to discussing this research with you.