Global Matters Weekly – Is active management dead?
In recent years, there has been a growing shift towards passive investing at the expense of active management. Passive funds have outperformed active funds and achieved this within a lower fee structure. This creates a compelling proposition that has been difficult for investors to resist. Should we accept that active management is dead, and passive is the future? Alternatively, is there evidence to suggest that active versus passive is cyclical and highly influenced by the macro environment?