This is a very depressing time for active fund managers, as the attack of passive asset management is brutal, flanking them from both an aggressive media coverage and strong cash outflows. Who indeed could have predicted that John Bogle, yes John Bogle Vanguard’s founder, would become such a rock-star today! His pictures and quotes are just all over my tweeter feed. And it is not going away soon…
And cash inflows/outflows are just even more worrying for them. As more than 30% of US assets under management were passively managed at year end 2016, and a clear momentum for a continued increase in 2017 dawns, traditional asset managers can actually start to be scared, at least. With good reasons to !
However, the current never ending beating up of active management became that strong and mainstream, while the answer given by active managers that shaky, that we could rightfully wonder if this is not getting a bit too far. Well, of course I must confess that I am among the first ones to give them a friendly slug when I can, sorry about that, but I also consider that they might need a helping hand guiding them out of this. There are some limits to plain criticism and being more constructive is possible.
Continue reading Active managers survival guide in a passive management jungle