StarTribune - Are the days of active fund managers numbered? Grant Meyer - September 2, 2014
With a few exceptions, managed funds have lost the battle to indexes and exchange-traded funds.
Charles Ellis rocked the financial world recently when he suggested that actively managed mutual funds are being pushed into the periphery by passively managed funds.
“With rare exceptions, active management is no longer able to earn its keep,” the founder of Greenwich Associates consulting firm told the Wall Street Journal in a recent interview.
Active fund managers are hardly giving up the ghost. While lower fees may attract or keep business, human nature will keep many fund managers in their current jobs.
“There will always be active fund managers out there,” said Grant Meyer, financial consultant with Fure Financial in Bloomington. “Passive management is boring. There aren’t any fun stories to tell at a party about how you made big bucks in an index fund.”