Giles Kidd-May, marketing and communications director at CRUX Asset Management, is looking for industry backing for a new initiative to educate end investors about the differences between active and passive funds.
Kidd-May said the not-for-profit Active Funds Alliance has not been formed with the aim of "putting down" passive vehicles. Instead, it is focused on highlighting the merits and downsides of both active and passive strategies.
He believes the differences between active and passive investing are currently not well understood by investors, many of whom do not know what they are invested in.
Kidd-May, who started his career at Jupiter where he worked for 16 years, said: "I have always been passionate about active fund management during a career spent working for active asset managers, but I am saying there is a role for passives too."
The initiative will also promote the need for financial advice when making investment decisions, as Kidd-May identified potential issues for people using robo-advice type offerings in the future, especially when markets turn.
Kidd-May has already started working with marketing and creative agencies, with the initial aim of building a website as an outlet where investors can access educational material on active and passive funds.
This could then be extended in the future, with Kidd-May saying there could be potential link-ups with other financial education initiatives.
The launch of the Active Funds Alliance comes as the actively-managed funds industry finds itself on the defensive, after being heavily criticised in the FCA's recent Asset Management Market Study.
For more information and to get involved with the Active Funds Alliance, email [email protected]
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