Can active management save your KiwiSaver from a downturn?

International research shows active managers aren’t any better than the index when markets are falling. (Image: DepositPhotos)

Dan Brunskill

Fri, 14 Jan 2022

One of the most heated debates in funds management is whether active or passive management delivers better long term returns for investors.This debate has been more or less settled in the United States context, with study after study showing very few hedge fund managers can consistently outperform the benchmark.For example, the Financial Times (FT) reported fewer than half of all active funds outperformed the S&P 500 index in the year to June 2021 and fewer than 20% outperformed over a 10-year period.Defenders of active management have ofte...

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