What Could Go Right for Active Management
A market bubble would be nice.
Bad News Bears
Wednesday’s column laid out a dire future for active fund managers. They currently are attracting only one third of net fund inflows (counting both traditional funds and exchange-traded funds). What’s more, their two areas of sales success, international-stock funds and target-date funds, are under siege. Because of strong performance over the past decade, as well as fiduciary concerns with 401(k) plans, index funds are gaining market share in those two sectors.
However, as several readers have pointed out via emails (please feel free), I might be wrong. Always true, and a particularly apt admonition for that column, which ventured into the perilous field of forecasting.
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