Active investment funds face rising pressure

Tuesday, July 16, 2019


Passive and active fund management.


Active investment, actively buying and selling assets to try and outperform the market, was already under fire because of poor performance, high fees and passive funds (tracking a specific index) performing well due to the surge in global equity markets. Exacerbating this, the decision on June 2 by Neil Woodford, one of the United Kingdom's best-known fund managers, to suspend withdrawals from his flagship Equity Income Fund is triggering a scandal in UK asset management.


  • Passive funds performing well fuels asset price bubble fears as they tend to lead to more money being directed to larger firms and sectors.
  • Exchange Traded Funds, popular passively run vehicles, have momentum, holding almost 5.5 trillion dollars, six times as much as in 2009.
  • The dollar may rise as geopolitical uncertainty will drive ‘safe haven’ interest but doubts over US growth and policy will cap the trend.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.
To read the full version of this content please select one of the options below
You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
Would you like to purchase this content for your university? Click the button to visit our Expert Briefing product page for purchasing information.
If you think you should have access to this content, click the button to contact our support team.