The growth of passive investing has dented morale among active asset managers in the US, leading them to rethink their business models, according to Gilbert co-founder and CEO Martin Aberdeen Asset Management. 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, Aberdeen Asset Management said.
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.