Active management involves an investment manager with the management of your portfolio. The goal is for the manager’s actions to be to the benefit of the investor. Such benefits could be that the risk taking within the portfolio is lower than the benchmark in times of market turmoil and higher again when market conditions are favorable again all within the boundaries of the investment mandate

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What does the Steer active management process entails?

At Steer Capital our actions and decisions are driven by a systematic process that involves different angles at the investment markets. That means for example that we are not bound by one valuation method to evaluate Equities, but we utilise more than one discipline or methodology. The intention with our process is to make decisions that are well weighted and balanced across different views and opinions as represented in our programmed investment logic.

What is the value of active management, and can it be measured?

Active management’s value is measured in the way risk is managed within a portfolio. It is the part of investment management that is the least understood by investors. The truth is that we are all looking for good investment returns over time, but the path to achieve it more consistently has to do with the way our portfolios are managed in times of market turmoil. The value of active management is solely a result of risk management. We revisit the Calmar ratio which is the average annual return divided by the maximum drawdown. A higher Calmar ratio means you were better rewarded for risk you took.