Active Management May Be on the Rise Over Passive: But Active vs Passive is the Wrong Debate

August 28, 2018 |

Sources and Disclosures:

¹Financial Times, Robin Wigglesworth. “The Return of the Stock Picker”, September 2017. https://www.ft.com/content/294de4ec-9eb2-11e7-8cd4-932067fbf946 

²Ned Davis Research, December 2015

³Quantitative Analysis of Investor Behavior (QAIB), 2016, DALBAR, Inc. www.dalbar.com. Returns are for the period January 1, 1986 through December 31, 2015. The QAIB uses data from the Investment Company Institute (ICI), Standard & Poor’s, Barclays Capital Index Products and proprietary sources to compare mutual fund investor returns to an appropriate set of benchmarks. Investor returns are represented by the change in total mutual fund assets after excluding sales charges and costs, but do captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. After calculating investor returns in dollar terms, two percentages are calculated for the period examined: Total investor return rate and annualized investor return rate. Total return rate is determined by calculating the investor return dollars as a percentage of the net of the sales, redemptions and exchanges for each period.

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The views and opinions expressed throughout this paper are those of the author as of May 2018. The opinions and outlooks may change over time with changing market conditions or other relevant variables.

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