European Capital Partners - An active bet Discover this fund | European Capital Partners
Asset management and fund structuring boutique

An active bet

Dec 19, 2023

82.5% ! That is the return you would have got by investing into MSCI World USD TR ( in USD ) over 5 years. So why bother about active management and pay a management fee to someone trying to beat Mr Market by allocating to countries, sectors and stocks? Think twice as past performance is no guarantee for future results. MSCI World is currently a very concentrated bet on the so-called magnificent 7 US mega-cap stocks. These 7 stocks represent more weight in the benchmark than the combined weightings of UK, China, France and Japan in the same index. With this level of concentration, the active managers remaining in business may have an opportunity to beat MSCI World going forward.

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