Lyxor rubbishes claims active management is in 'terminal decline'

'Exaggerated'

There is still a place for active management, which can benefit from the "competitive asset management marketplace" the rise of passives has created, according to Lyxor and the Université Paris-Dauphine's House of Finance.

The report, titled What role has passive management left for active?, said active management still has a "vital" role to play in the financial ecosystem. The rise of passives over the past decade has been well documented with assets in global ETFs passing the $5trn mark in January. According to Morningstar, passive funds represented 27% of total funds managed in 2017, up from 16% in 2010. Furthermore, in a recent report, Moody's Investors Service predicted passives would account for 25% of the European market by 2025. Marlene Hassine (pictured), head of ETF research at Lyxor, co...