Active, Passive in 'Darwinian Process': Unigestion CEO

The video discusses active management strategies in the context of market stress, emphasizing risk management to offer equity solutions with less volatility. It explores investment strategies, including alternative solutions and multi-asset approaches, addressing client concerns about low interest rates and high equity markets. The discussion shifts to industry trends, highlighting the polarization between large asset managers and boutique firms, and the emerging price war. Finally, it provides a market analysis, suggesting hedging strategies against market stress, the potential for a US rate hike, and opportunities in emerging markets.

What is the primary goal of using a risk-managed approach in active management?

• To increase portfolio risk

• To match the index performance with higher risk

• To reduce portfolio risk while aiming for better performance than the index

• To eliminate all market risks

Why might smaller asset managers find it difficult to compete with large firms like BlackRock and Vanguard?

• They have higher production costs and lower volumes

• They lack access to global markets

• They have more regulatory restrictions

• They focus only on passive management

What is a suggested strategy to hedge against market stress and potential corrections?

• Buying volatility and holding long USD positions

• Investing solely in emerging markets

• Focusing on high-risk equities

• Avoiding all investments

How do emerging markets compare to developed markets in terms of valuation?

• Emerging markets are more expensive

• Emerging markets are less expensive

• Both have similar valuations

• Developed markets are less expensive

Which type of countries are favored in the context of potential US interest rate increases?

• Countries with stable current account deficits

• Countries heavily dependent on US trade

• Countries with unstable political environments

• Countries with high current account deficits