The long running debate over active vs. passive management shows no sign of abating, abating with the ‘pro-actives’ convinced that their brand of investment management is superior to the ‘pro-passives’, because of the potential to outperform any given index and claims of the downside protection it offers as well. The ‘pro-passives’ in turn point to
At a recent International Investment Conference in Cape Town, an active manager rather unkindly referred to passive investors as “zombie” investors; in the sense that passive investors who invest in an index, based in some way on the market capitalisation of the underlying shares, were investing regardless of the prices or the fundamentals of the
With the FTSE 100 and S&P 500 having breached record highs this year holders of tracker funds have the right to feel ever so slightly nervous, still interest in passives is booming. [Source: Mar 18 2015 – Author: Gary Shepherd, Editor, Portfolio Adviser] Read entire article >>>
A recent article in the Financial Times, by John Authers, has highlighted some key developments in the passive/active fund management debate. The article discusses the apparent contradiction that growth in the use of passive products, internationally, has stimulated the demand for active asset managers. One person Authers interviewed put the following perspective forward: “(w)hat I
