Martin Gilbert: Why active investing still has an edge

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The work of Vanguard founder Jack Bogle, who sadly passed away last month, came to totally redefine the investment industry, writes Martin Gilbert, co-CEO of Aberdeen Standard Investments.

His work on index-tracking funds in the 1970s paved the way for exchange-traded funds in the 1990s, which led to a five-fold surge in assets in passives after the Great Financial Crisis. That growth came at the expense of active managers and the trend is set to continue. So, it could be seen as strange for the leader of a traditionally active fund management company to praise Bogle so much. But that would be short-sighted.  The active versus passive debate has always been a phoney one. Passive strategies have low fees and investors are guaranteed the same return as the index they trac...