Does Active Management Still Work?
We seldom publish third party material on our website but occasionally we come across a study that is worth sharing. There continues to be much debate concerning passive and active investing plus the use of ‘smart beta’ strategies. This piece from Ian Lance’s team at RWC and kindly reproduced here with their permission, provides a clear analysis of the relative merits of each, finding that active asset management is very much alive and rewarding, not least when fund managers are not constricted by managing too many assets. As we already know and constantly remind our readers and investors, size matters – not being too big really matters.