PA ANALYSIS: What has inspired the active fund renaissance?
It was a bad time to be an active manager in 2016, the year of Brexit and Trump, with underperformance plaguing funds as passives tracked the market higher and higher.
It was a bad time to be an active manager in 2016, the year of Brexit and Trump, with underperformance plaguing funds as passives tracked the market higher and higher.
Research from BMO Global Asset Management’s multi-manager team, headed by Rob Burdett and Gary Potter, shows that the cream of the active management crop have outperformed the top passive funds over the long term.
Passive rivals have forced active managers to focus more on fees than ever before. But are active managers biting off more than they can chew by getting into smart beta?
Worldwide profits for traditional mutual fund groups fell by close to 3% in 2016, despite higher assets under management, according to a report by McKinsey.
David Coombs, head of head of multi-asset investments at Rathbones believes passive funds may be inadequate to overcome the challenges arising in the new political climate.
Asset managers should take a page from the book of IFAs, and focus more on outcomes for their clients than one-upping competitors, according to The Adviser Centre’s Peter Toogood.
It is no secret the evidence suggests the average active fund manager struggles to outperform consistently.
The hype around passive products has never been more intense, but Brooks Macdonald Asset Management’s Jon Gumpel warns that there could be danger ahead for passive investors.
Passive management in the fund industry could lead to “free riding, adverse selection and moral hazard” if left unchecked, according to investment giant Pimco.
Passive funds charging investors over the odds have fallen under the radar as the debate over active fees has raged, according to Morningstar’s Jonathan Miller.
Fewer than half of all UK equity funds manage to survive longer than 10 years, according to the latest research from ratings agency S&P.
Competition between wealth and asset managers on solutions-based products is a real threat to business models in an increasingly complex market, according to JPM Asset Management’s Jasper Berens.