Citywire invited seven CEOs of active fund management groups to share their views on the industry ahead of a crucial report due from the UK regulator that could have knock on effects for managers across the globe.
The CEO Tapes Part 2 reveals a very frank set of views. Some openly questioned the poor value of many active funds or highlighted the myth of the consistently yearly outperforming fund manager. Some passive funds get a hammering for being based on highly questionable quant-based factors.
In this film some of the CEOs acknowledge that there are too many active funds, that some have proven 'very very expensive' and real fund manager skill is rare.
However, they agree that to expect passive funds to deliver for all clients is just faulty thinking, fuelled by QE sending markets to all time highs. High quality active fund management blended with passive where appropriate has the best chance of meeting client needs.
The CEOs in the filmed discussion include:
- Keith Skeoch, Standard Life
- Edward Bonham Carter, Jupiter
- Saker Nusseibeh, Hermes IM
- Kevin Gundle, Aurum
- Robert Higginbotham, T. Rowe Price
- Sridhar Chandrasekharan, HSBC GAM
- Alexander Friedman, GAM