Is active portfolio management a more profitable alternative than passive portfolio management for investors in a context of economic downturn / Lucas PLANCHON / 2020

Titre : Is active portfolio management a more profitable alternative than passive portfolio management for investors in a context of economic downturn Type de document : Mémoire Auteurs : Lucas PLANCHON, Auteur Année de publication : 2020 Importance : 30 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management GESTION DE PORTEFEUILLE ; GESTION ACTIF PASSIF ; CYCLE ECONOMIQUE Résumé : Investment industry have known for a long time a debate opposing passive portfolio management to active portfolio management. These last years, passive management has accentuated its domination over active management. It benefits from lower operating costs, less needs in terms of investment skills and finally on average higher returns for investors. Nevertheless, when stock markets face uncertainty, when volatility increases and when economic environment face important difficulties, one might wonder whether active portfolio managers are able to better resist to economic downturns and to overperform passively managed funds. This question is analyzed through the prism of a theoretical approach of passive and active management which highlights the superior profitability of passive funds for investors. Then it is analyzed through the case study of the covid-19 crisis during year 2020 and the performance of passive and active investment funds in the world and in Europe. Results of this study show that active funds investing in different stock markets in the world have been outperformed by passive funds investing in the same geographical area. On the same time, active funds investing only on the European stock market have overperformed passive funds on a yield-to-date basis, but not even on a one year-basis. The conclusion of this study is that there is no evidence on average of a particular advantage of active portfolio management over passive portfolio management even in a context of economic downturn. Programme : MSc Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=532901