Pacific's Lamb: Active management in 'trough of disillusionment'

Employing a 'zero bias approach'

Matthew Lamb, CEO of Pacific Asset Management (PAM), has said many active fund management firms will be forced to close, as the industry comes under renewed pressure from clients and regulators to reduce costs and improve efficiencies.

Speaking to Investment Week, Lamb (pictured) said a supply shake-out due to underperformance will force many firms to shut, leaving only the good active managers to outperform. "Active management is in this trough of disillusionment and passives are rapidly growing at its expense. Passive products will continue to rise, which will force active managers to reprice.  "When this occurs, many bad firms will go bust. But passives will get too clever and will start to fail. This is when investors will realise active management does work," he said. Furthermore, Lamb said the world of asse...