The answer is "yes," according to a large majority of financial advisers who participated in a survey
In fact, advisers ranked lower or "flexible" fees that are commensurate with performance (30 percent) nearly as important as individual stock selection and downside protection (both 35 percent) as factors that could make active funds more competitive with passive funds in 2019.
"There is continued interest in active strategies, but their added value must be better demonstrated to fee-conscious investors and their advisers," said
Advisers were also confident that having actively managed strategies in their portfolios helped clients outperform the broader market in 2018. Of the advisors surveyed, 61 percent indicated that some, if not all, of their active portfolios outperformed the market this year. However, only 39 percent of advisors indicated that their clients had increased their allocation to active in 2018.
Added Thompson, "The continued market volatility and prospect of lower future returns present investors and their advisers with critical decisions. Investors should think twice about rotating out of active strategies into passive ones, which could potentially eliminate the opportunity to generate excess returns and protect against downturns."
AB currently offers six mutual funds with performance-based fees. The lineup includes equity and fixed income strategies that have proven track records of strong investment performance. To learn more: https://bit.ly/2xhzqcb.
About the Survey
The survey was conducted on
About
As of September 30, 2018, including both the general partnership and limited partnership interests in
Additional information about AB may be found on our website, www.alliancebernstein.com.
View original content:http://www.prnewswire.com/news-releases/financial-advisers-crave-fee-flexibility-from-active-management-in-2019-300764839.html
SOURCE
Andrea Prochniak, Investors, 212.756.4542, andrea.prochniak@alliancebernstein.com; Jennifer Will, Media, 212.969.1157, jen.will@alliancebernstein.com