Active management will beat index-tracking funds as the global market meltdown has led to a sizeable dislocation between prices and fundamental value, the firm’s Asia-Pacific chief investment officer Paras Anand said on a call with reporters yesterday.
Buying stocks and bonds based on company performance and outlook, especially assets based in Asia, will prevail over passive investing in a virus-wrecked world, according to Fidelity International Ltd.
Active management will beat index-tracking funds as the global market meltdown has led to a sizeable dislocation between prices and fundamental value, the firm’s Asia-Pacific chief investment officer Paras Anand said on a call with reporters yesterday.
Valuation as an indicator will be back on investors’ radar, he said, including in Asia where the price-to-book ratio of the regional benchmark stock gauge has fallen to 2011 levels.
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