Back to Reality

While active management has always played an important role in retirement plans, the COVID- 19 crisis has added new layers of complexity to the active versus passive debate. We observe a number of trends in the marketplace that will be key factors in the shape and timing of a recovery. Some of these trends, such as low interest rates, deglobalization and high debt levels, were already in place precrisis, while others, such as work from home and social distancing, are new dynamics that have arisen because of the virus. Investors will need to distinguish the permanent trends from the temporary and assess the long-term impact on various industries. We believe that skilled active management will be critical to helping plan sponsors and participants sort through these complex issues as they drive toward successful retirement outcomes.