Active Managers have a problem keeping it up!
"If you as an investor would like to have a top quartile investment return over the next decade: index"
Sage advice from Charlie Ellis, renowned investment writer and consultant. Charlie isn't alone in making such wise calls; a neat piece of research just out from S&P Dow Jones suggests that almost all active managers have a big problem in keeping up their top quartile performance.
"Out of the 557 domestic equity funds that were in the top quartile as of March 2016, only 2.33% managed to stay in the top quartile at the end of March 2018"
The report goes on to conclude that active managers find it increasingly difficult to stay on top as time passes, this is evidenced in the below chart.
The message is very clear. If you want top quartile performance year after year then conventional active management won't do it for you. If you would like to know about evidence-based methods of investing that stand the test of time then you can take a look at our infographic
or contact us
for a chat.
The referenced S&P article can be read in full here