Carol Geremia, President, MFS Institutional Advisors Inc
– A misalignment between investors and their asset managers could be causing them to forfeit the full value of active management.
– The disconnect is most evident through mismatched investment time horizons, where investors expecting alpha (ie outperformance) over increasingly short time periods don’t invest through a full market cycle, often leaving alpha on the table.
– Correcting the misalignment by helping investors define long-term objectives and more effectively assess and measure active skill could result in better investment outcomes.
The comments, opinions and analysis are for general information purposes only and are not investment advice or a complete analysis of every material fact regarding any investment. Comments, opinions and analysis are rendered as of the date given and may change without notice due to market conditions and other factors.
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