The growth of passive investing has dented morale among active asset managers in the US, leading them to rethink their business models, according to Aberdeen Asset Management co-founder and CEO Martin Gilbert. Gilbert said he was surprised by how much money had been lost over the past year as investors have pulled out of actively managed funds.
The growth of passive investing has dented morale among active asset managers in the US, leading them to rethink their business models, according to Aberdeen Asset Management co-founder and CEO Martin Gilbert. Although good active managers will be more profitable for investors in the long run, in sectors that have become more and more commoditised, such as American large-cap equities, it makes more sense to go for passive strategies, Gilbert said.