As the markets, including global stock markets, became more efficient due to increased computerized trading, online trading, and improved global communication, the benefits of
active fund management are questionable.
It leads inevitably to investors asking why they should pay for
active fund management when it clearly isn't working for many.
Active fund management costs are generally considerably higher than passive fund management.
"We think that there will be a lot of demand, because exposure of international investors to this region is still behind the curve," he said, adding that the fund will provide "exposure and passive management in an efficient way, when
active fund management has taken a hit."
Finally, the investment managers should be selected using a core of index tracking funds complemented by
active fund management where appropriate.
The program then allows a choice of
active fund management, quantitative (passive or index funds), or a blend.
Also, an
active fund management is being sought for the liquidity of the Financial Instrument, as has been the case for the Financial Mechanism.
By definition,
active fund management requires substantial buying and selling of shares: dividend income is dwarfed by the potential for gains arising from price fluctuations.
We're told because they offer round-the-clock consultation to savings plan investors and more
active fund management than competitors, their costs in small, rural southern states where they have no overhead are greater than in Manhattan.
Aberdare-born Mr Holtham made his name in the City of London as chief investment manager for Morley Fund Management - the UK's second biggest
active fund management company - where he was responsible for managing assets of more than pounds 125bn.
As one of the region's most
active fund management companies, NEL has been called upon many times to highlight the difficulties that regional SMEs face in plugging the `funding gap', generally caused by a restricted supply of start-up and expansion finance.
But Standard & Poor's Mr Guy Boden argues that a tracker fund can actually be seen at least a risky as
active fund management for investors keen to avoid the risks inherent in individual shares or sectors of the market.
