MFS

Active managers have been “getting it in the teeth” since the GFC, but that’s about to change as the massive misallocation of capital unwinds. The most valuable companies in the world are trading at a multiple that doesn’t befit their status.

Active management will be increasingly important for defined contribution (DC) retirement savings schemes as value-for-fees, expected lower future returns and sustainable investment preferences come to the fore, according to a new MFS white paper.

There’s not much growth ahead of the large-caps that have dominated indices for the last decade, and long-suffering small- and mid-caps (SMIDs) present an obvious answer for returns.