Of course, as the fine print says, you can’t invest in an average or a category—it takes extensive due diligence to get it right. Everything should be in play: how active a manager actually is, the fee level and fee structure, and how an active strategy fits in a client’s portfolio. An advisor’s own take on the environment ahead and how portfolio choices could impact client outcomes.
It may take considerable effort to find high-conviction active equity managers who can deliver consistently, but given today’s investing landscape and what we see coming down the road, we think it’s worth the effort.
Richard A. Brink, CFA, is a senior vice president and market strategist in AllianceBernstein’s Client Group. Walt Czaicki, CFA, is a senior portfolio manager for Equities at AllianceBernstein. Scott Krauthamer, CFA, CAIA, is managing director and global head of equity product management & strategy at AllianceBernstein.