How can active managed funds survive?

The track record of active managers is being dragged down by the growing number of quasi-tracker funds in their peer group, according to recent research from the Yale School of Management.

Associate professor of finance Martijn Cremers helped to develop the concept of ‘Active Share’, which looks to separate genuine actively managed funds from quasi-index trackers with high fees. Asset TV spoke to Cremers and Peter Elston, a strategist with Aberdeen Asset Management Asia and a supporter of Cremers’ work, on how Active Share works and what the implications are for retail investors. What first got you interested in Martijn Cremers’ work and the concept of active share? Peter Elston (PE): I first came across Martijn’s research when I was reading, as I had done for a long time...