Asset Management

Active managers need to do better or they don’t have a future, says Martin Gilbert

Stock-pickers have been losing out to cheaper passive rivals and that trend is predicted to continue

Martin Gilbert, former co-chief executive officer of Standard Life Aberdeen
Martin Gilbert, former co-chief executive officer of Standard Life Aberdeen Photo: Getty Images

Active fund managers need to stop making excuses for poor performance, according to industry veteran Martin Gilbert, adding that if stock-pickers do not outperform in the current downturn they will lose out to the fast-growing ETF industry.

Despite charging more for their expertise, studies have shown that active funds have failed to beat index-trackers, even during the volatility in the first quarter that should have provided them with an opportunity to outperform.

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