Covid-19 seen unlikely to stem flows into passive
The pandemic has caused asset mispricing, posing both risks and opportunities, but seems unlikely to benefit active management. Meanwhile, liquidity is the top concern for investors in Asia.
Covid-19-driven market distortions have prompted discussions that active asset management may have a competitive advantage during times of volatility over passive strategies. But respondents to a survey by investment professionals association CFA Institute do not think so.
Of the total respondents, 42% said it was unlikely the crisis would reverse the steady shift into passive investments from active investing, versus 31% who felt it could lead to a reversal in favour of active st…
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