News this past week
- Eurozone unemployment continues to fall
- 10-year Bund yield dip below 0.1%
- Q1 US GDP forecast downgraded
- Yen at 17-month high against the dollar
- Oil rallies by 8.5%
Scott Gordon of Momentum Global Investment Management shares his view:
The debate on whether active management is worth the cost has been raging for some time now, and it seems that investors are becoming somewhat disillusioned. The argument centres on the fact that an average active manger cannot beat their benchmark: the average active manager is, well, rather average. At the same time, passive investment shops are cutting costs at breakneck speed, and highlighting the benefits of index-investing. Why pay high fees for average performance, when a cheap alternative gets you your benchmark?