Will alternative beta strategies challenge active management?

PASSIVES

Despite being a well-versed debate, commentators on each side of the active versus passive argument have had to contend with a number of curveballs lately.

The passive industry has garnered significant attention over the last 12 months – the IMA reported last week that 2011 was the most successful year ever for tracker funds with net retail sales hitting £1.9bn, bringing total funds under management to £39bn. But 2011 was also a year of firsts for the active management industry. January saw the launch of the first ever low-cost active vehicle in the form of JP Morgan’s UK Active Index Plus fund. The launch of Schroders’ UK Core fund in March has paved the way for an influx of imitations ever since. However, an expected increase in attent...