Managers from emerging markets have increased market share over last decade at expense of Europe, according global survey
It is more likely that passive funds will survive and generate a return in excess of their average active peers, according to Morningstar
Cheapest US equity funds have produced better returns compared to pricier active peers, according to Morningstar
Christian Pellis, global head of third-party distributors at Amundi, discusses the changing relationship between fund buyers and managers, and the idea that just ‘selling funds’ may not have much of a future.
The rapid growth in passive investing is likely to cause more sudden and sharp movements in equity markets but could also give active fund manager a bigger role in influencing stock moves, according to three top industry executives.
Fidelity International has stepped up the passives price war with the launch of six low cost Irish-domiciled equity index funds and the reduction of pricing on three existing UK-domiciled index funds.
Not all FTSE All-Share trackers are priced equally and the costliest passive exposure comes from the Virgin UK Tracker with a whopping 1% charge. Click through the gallery below for the five cheapest funds on offer and help investors get more for less.
As cumulative flows into emerging market passive funds surpass active alternatives investors should seek opportunities further down the market-cap scale, Aviva Investors head of emerging markets and Asia Pacific Will Ballard argues.
Passive investors pay scant regard to the fundamentals of individual securities and free-ride on the work of active investors with implications for financial stability, price discovery and index correlation, according to a paper from the Bank of International Settlements.
New Morningstar data shows that around 16% of European assets invested in funds were held in passive strategies in January 2018, much less than many had expected.