Is index-hugging the way to go or do active managers earn their keep?

Is index-hugging the way to go or do active managers earn their keep?
Jenny Ruth
One outcome of ultra-low interest rates is that, like a receding tide uncovering flotsam, it highlights how much fund managers charge investors in their funds and increases downward pressure on those fees.That's particularly true for those managing equities funds, given the rise and rise of index-hugging passive funds – according to Statista, passive funds globally accounted for 31% of managed funds in 2020, up from 14% in 2011.The pioneer of index-hugging funds was Vanguard founder Jack Bogle who debuted his first passive mutual fund...

More Finance

Matt Whineray to chair new FirstCape Group fund manager and adviser
Finance

Matt Whineray to chair new FirstCape Group fund manager and adviser

The new entity aims to scale up advice and fund management services in NZ.

Staff reporters 23 Apr 2024
FNZ settles dispute with US executives
Finance

FNZ settles dispute with US executives

Adam Green and Steve Gross resigned on the same day late last year. 

Victoria Young 22 Apr 2024
Decision to cancel licence for crowdfunder Equitise ‘not taken lightly’ – FMA
Finance

Decision to cancel licence for crowdfunder Equitise ‘not taken lightly’ – FMA

Repeat offender Equitise facilitated two deals after it was deregistered last year.

Jem Traylen 17 Apr 2024
Central banks slowly winning war on inflation
Finance

Central banks slowly winning war on inflation

But policymakers remain wary of rising prices. 

Bloomberg 16 Apr 2024