A senseless battle: Active and passive investment need to learn to get along

Room for both to grow

It has, to put it mildly, been a good year for passive investment funds that track a broad market index like the FTSE 100, writes Campbell Fleming, global head of distribution at Aberdeen Standard Investments.

Much of it has been at the expense of their active peers which try to seek out undervalued investments. Almost $500bn has moved from the latter to the former so far this year. This keeps up a trend that has seen massive flows from active to passive strategies in recent years and the gradual growth of passive over the past 30 years. Diment poised to head Aberdeen Standard Investments EMD team as House departs The predictions of the imminent demise of active management that have followed are wrong. After all, PwC predicts actively managed assets will increase to $74trn by the end of ...