Long Lives and New Strategies

Abstract

What is the greatest single investing challenge in today’s markets? Longevity. Investors today need to save more and get higher returns from their investments to pay for longer lives. Adding to the burden is a particularly difficult investment environment precipitated by the financial crisis. Fortunately, there are solutions to these challenges, and the asset management industry is undergoing some significant changes in order to meet the demands and needs of investors. There are two broad trends: first, the rise of index investing and, second, a shift in actively managed funds toward unconstrained and outcome-oriented strategies.