[In the ongoing debate around active vs. passive investment management, one can argue that cost and relative return may not be the only, or even the most important, factors at the heart of the debate. While those two factors are understandably key drivers of the conversation, equal time should also be given to the element of risk, and risk management, as possibly the predominant cornerstone of the debate. In fact, Cerulli Associates, a global research and consulting firm, has been reporting for years that the majority of investors have weighed-in overwhelmingly – by a 3-to-1 margin – on the side of portfolio protection and protection-focused portfolios over out-performance and growth-oriented portfolios – even knowing that decision can negatively impact their long term financial plan…
