Pimco warns on passive investing ‘free riding’
Passive management in the fund industry could lead to “free riding, adverse selection and moral hazard” if left unchecked, according to investment giant Pimco.
Active Versus Passive
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Morningstar: ‘Expensive’ trackers overlooked in active/passive debate
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.
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S&P: Most active funds fail to survive past 10 years
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.
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JPM’s Berens questions industry’s ‘narrow’ view
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.
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UK active equity underperformance quadruples in 2016
The S&P Indices versus active funds (SPIVA) Scorecard revealed that the amount of actively managed UK equity funds that failed to beat the benchmark quadrupled from 22.2% to 87.22% between 2015 and 2016.
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Asset managers fear hit to profits; consider passive launches
A group of asset managers surveyed by Portfolio Adviser unanimously agreed that the industry will become less profitable over the next three years.
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Too late for actives as passive ‘genie’ escapes bottle for good
Passive momentum is unlikely to slow even if active management performance improves, says Cantor Fitzgerald director of equity research financials Keith Baird.
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TMI’s Herberts: ‘Right time’ to add active risk
Thomas Miller Investment’s Andrew Herberts has reduced his exposure to passive funds, arguing that now is the right time for UK active managers to prove their worth.
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PA ANALYSIS: What future for life companies in asset management?
Given the mixed fortunes of life companies, can they handle the tough balancing act of asset management?
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Miller ‘naive’ to accuse active managers of price collusion
Claims made by campaigner Gina Miller that the active management industry is ‘anti-competitive’ have been dismissed by a top portfolio manager as both ‘naïve’ and ‘dangerous’.
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Local governments add to fee pressure on active managers
A UK think tank has slammed the active management of the Local Government Pension Scheme (LGPS) as an ‘expensive folly’ after finding its 89 funds underperformed against major indices over the past decade.
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PA OPINION: Zero-fee funds? Be careful what you wish for
Talk of a 0% fee for passive investing is an enticing prospect, but as core funds become cheaper so groups are encouraged to over-complicate the satellite.
