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.
Active Investing
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ANALYSIS: Time for active funds to adapt or die
The active funds industry must shrink, cut prices, better-align itself with investors and differentiate if it wants to compete against a passive onslaught, according to a report by Morningstar.
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Majority of active funds not ‘closet trackers’, says report
A clear majority of UK active equity funds are not closet trackers and should not be tarred with that brush by the regulator, new analysis of the UK fund market suggests.
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Political uncertainty boosts case for active over passive funds
Passive funds have performed strongly in recent years, benefitting from relatively low volatility and more accommodative monetary policy in most developed economies, says David Macdonald, VAM Funds’sales and marketing director.
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Over half of active funds in the UK close within 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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Global unconstrained fund managers best, says UBS WM’s Lecher
Stefan Lecher, the new head of client portfolio management for Asia-Pacific at UBS Wealth Management in Hong Kong, said unconstrained managers have the best chance to excel.
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Tilney targets advisers with ‘smart beta’ range
UK wealth manager Tilney for Intermediaries is planning to launch a new range of ‘risk graded, low cost multi-asset funds’ in the first quarter of 2017.
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It is time for active managers to leave benchmarks behind
Benchmarks are a vital part of the asset management sector. Funds are measured against them, bonuses worked out in relation to them and entire sectors of the industry predicated upon them. But, if recent trends are extrapolated outwards, the days of the benchmark in its current form should be numbered.
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FCA demands ‘all-in’ charge in active management crackdown
The FCA has criticised the “weak price competition” among asset managers, attacking actively managed funds for failing to outperform their benchmark once fees have been taken into account.
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UK equities and the long goodbye
As the market reacts to the UK’s shock decision to leave the EU, active managers are underperforming their passive peers when it comes to UK equities.
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Number of European active funds beating benchmarks rose sharply in 2015 – Lyxor
Lyxor Asset Management has found that close to half of European domiciled active funds outperformed their benchmarks last year, a big increase on 2014.
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Active management sector needs to shrink – Moody’s
The active management industry will have to shrink substantially, Moody’s Investor Services argues in a new report on the growth of passive investments.