Author Topic: Two-thirds of active fund managers invest in passive funds  (Read 1902 times)

Patrick

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Two-thirds of active fund managers invest in passive funds
« on: August 05, 2013, 08:50:32 am »
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What? They should be putting their money where their goddamn mouth is.”

That was the response from one well known but irate US investor when I told him that fund industry professionals appear to be touting the advantages of active management as part of their day job, while investing their personal assets in low-cost passive funds.

Indeed, a poll by Ignites, an FTfm sister publication, of 1,001 fund staff – many of whom make their living promoting active products – reveals that two-thirds have a sizeable amount of their personal savings in passive funds. This includes 45 per cent who say they have a “significant” portion in passive products. Only one in five say they avoid passive funds altogether.

The findings should not be surprising, given that three-quarters of active managers never actually beat the market – a statistic those in the fund business know all too well. It does, however, leave a bitter taste in the mouth.

Here's the full article: http://www.ft.com/intl/cms/s/0/23eba484-dffe-11e2-9de6-00144feab7de.html#ixzz2b4hXwcTq

Moneypenny

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Re: Two-thirds of active fund managers invest in passive funds
« Reply #1 on: August 06, 2013, 07:53:40 am »
Nothing ventured, nothing gained.
Veni, vidi, vici