With active management seemingly in a downward spiral, advisors have to question the sustainability of their mutual funds over the next decade.
At the Morningstar Investment Conference last week in Chicago, Laura Lutton, practice leader, manager research, and Greggory Warren, financial services senior strategies, shares Morningstar’s views on nine fund complexes whose active strategies are likely to survive the next 10 years.
“We’re only highlighting nine firms here, but there are plenty of others out there with positive attributes,” said Lutton. “As we think about the industry overall, we think active managers need to improve their performance and they need to change the perception that active management means underperformance.”
It’s no secret that active’s decline is passive management’s gain – in 2016, passive funds grew 4.5 times faster than their active counterparts, according to Morningstar.