How active managers can thrive on opportunities created by growth of passives

Ongoing debate

Daniel Murray, chief economist at EFG Asset Management, explains why 2017 will be a year to keep faith in active management.

The debate between active and passive investing rumbles on and will likely continue to do so for many years to come but we think it is right to stay with active management in 2017. Active management has been under pressure for some time. That trend is seen, for example, in the sharp increase in flows into equity exchange-traded funds and the offsetting large outflow from actively-managed mutual funds. It may well continue in 2017 and does perhaps create interesting opportunities for active managers. Darius McDermott: Why we shouldn't throw the baby out with the bathwater on active man...