Plotting a safe passage to horizons near and far

To some managers the solution is the use of passive funds, such as index trackers or ETFs, which replace an active manager’s ability to create alpha with the beta of a market index.

While such solutions may make sense in the gently rising markets experienced today, the risks associated with buying the over-owned components of any index would make little sense when a market-disruptive event occurs.

Gareth Lewis is managing director, head of investment strategy, at Tilney