The Comeback of Assets: The Human Touch Strikes Back in Investment Management
After a decade of dominant passive management, investors are reassessing the value of active funds. The current global uncertainty highlights the importance of human discernment and strategic flexibility.
The End of Autopilot
In an environment where interest rates, currencies, and public policies are evolving without synchronization, active managers are regaining agility. While ETFs are mechanically impacted by market fluctuations, managed funds can adjust exposure, arbitrate geographic areas, or strengthen certain themes. « We are seeing a net reallocation towards discretionary strategies, » explains Matthew Bullock, Head of Portfolio Strategy at Janus Henderson. « The gaps between winners and losers are going to widen, and only selective management can capitalize on this."
Bond managers, in particular, are taking advantage of rate volatility to rebuild yield. After a decade of zero rates, they can once again actively arbitrate between sovereign debt, corporate credit, and inflation-linked products. The same logic applies to equities: European investors maintain a strong exposure to large American stocks (+5 points over six months), but are gradually redirecting their portfolios towards the Old Continent. Nearly 35% of equity allocations now involve European stocks, compared to only 15% in global indices. This return to local investments reflects a search for better understanding of risks and fundamentals.
Conviction-Based Management Amid Market Noise
This shift is not limited to institutional finance. For individual investors, savings platforms and robo-advisors are now incorporating active funds into their model allocations. The so-called « core-satellite » solutions—a passive portfolio core surrounded by active satellites—are becoming more widespread. According to Morningstar data, nearly 40% of new flows collected in Europe since January are heading towards conviction funds, particularly in climate, health, and infrastructure themes.
Active management is also regaining political legitimacy: by supporting the financing of unlisted companies, energy projects, or industrial SMEs, it reconciles performance with economic utility. It's a way for investors to give their capital more meaningful impact in a context of macroeconomic uncertainty. « Active management is no longer synonymous with risky bets, but with assumed responsibility, » summarizes Bullock. « It allows portfolios to adapt to a fragmented world where historical correlations no longer hold."
Conviction-Based Management in the Face of Market Noise
In other words, after ten years on autopilot, markets are rediscovering the value of the human touch. While active management will never guarantee outperforming the indices, it is regaining what it lost: the confidence of investors.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
