The Russell 1000 Growth Index’s return over the past 10 calendar years ranks just inside the top quintile of returns generated by active large-cap growth managers. While that relative strength might bolster the argument for passive solutions among some investors, Jennison Associates takes a closer look at the sources of that strength to reveal compelling forward-looking potential for outperformance among active strategies that consistently focus on individual-company fundamentals.
Apple and Microsoft played an outsized role in the Russell 1000 Growth’s run over the past decade. After accounting for nearly one-fourth of the index’s returns in one of the longest and most consistent periods of outperformance in its history, Jennison explains how the past success of these two companies positions them to continue influencing the index due to their market capitalizations at a time when ample size and robust valuations limit their future growth prospects.
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