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A changing regime with higher and more volatile inflation and less trended markets, an evolution of ESG and questions on “appropriate” passive indices all demand a reassessment of the role of active management. This suggests asset owners may set limits on passive allocations.
Deglobalization demands attention from strategic investors, given its far-reaching implications for risk, return, correlation and-ultimately-portfolio construction. This is not adequately reflected in portfolios today.
The recent crisis in the UK pension industry has implications both within the country and far beyond it, raising questions about asset allocation, macro policy and the investment environment.