[Weekly Wrap] Regulators need to be careful with funds firms
During the week I was sent this article which argued that active managers are dead and passive will win the day. The premise of the article is that it's getting harder to find returns - or the returns of the good old days are something from the past - and fees have to come down.
The equation says this equals unprofitable businesses.
This argument between active and passive has gone on for the 25-plus years I have reported on funds management and is likely to go on, unresolved, for as long as I report on the area.
When I was sent the article my initial response was that we had seen the opposite in New Zealand with the emergence of many boutique managers. Also there is clear evidence that in New Zealand active managers can add value with equities.
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