For the past year, the monthly and quarterly FUM updates from the listed fund managers have been characterised by material net outflows.
This reflects the rise of low cost passive strategies, but also the fairly chronic long running underperformance by active managers.
Interestingly, of the two “flagship” listed equity managers, that we are thinking of as we pen the note, one a Value centric strategy, the other a Growth centric strategy, both have underperformed, which is difficult to do given the success of both factor premia over the past few years.
As such, it is with slight humour that we see flows taking up “less space” in the monthly updates, moving forwards.
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Please note that past performance is not a reliable indicator of future performance.
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