EDITORIAL: Active fund managers’ pain may be a boon for their customers
Covid-19 has come out on the side of passive funds in the contest with active asset managers, but the intervention of central banks makes it difficult to call a winner just yet
28 July 2020 - 05:05
When Warren Buffett challenged traditional asset managers over charging exorbitant fees that couldn’t be justified by their performance, passive funds were still a relative unknown.
It was in 2008 just as the global financial crisis was nearing its depths. He bet that funds that did no more than track the performance of the Standard & Poor’s 500 would over a decade beat their active peers, where the manager handpicks stocks, with fees, costs and expenses factored in. It wasn't even close...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.