When markets are as rocky as they are, actively managed funds have the chance to really outperform passive funds, says industry veteran Martin Gilbert.
Gilbert, who co-founded the company that is now FTSE 100 giant Abrn and currently chairs acquisitive group AssetCo PLC (AIM:ASTO), said current conditions offered “a massive opportunity for active asset managers to outperform”.
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So much investor cash has been poured into passively managed funds that last year they overtook actively managed funds’ ownership of the US stock market for the first time.
“I think when markets are rocky this gives active asset managers especially value or quality fund managers the chance to really outperform,” Gilbert said.
He made the comments to Proactive as AssetCo agreed to acquire sector peer SVM Asset Management (LSE:SVM) to strengthen the group’s Edinburgh ‘hub’.
Following the deal, Gilbert said AssetCo saw “a lot of opportunity” in the market for further organic growth and for more M&A in London or Edinburgh.