Passive funds leave actives languishing

March 15, 2024--Assets in US index-trackers now outstrip those in stock selectors as investors opt for a smoother ride
Water can dramatically change the landscape, as the slow but steady process of erosion creates cliffs, caves and oxbow lakes.
A similarly remorseless transformation has been occurring in the fund management industry as active managers (those who like to select stocks) have been outcompeted by passive managers (those who track an index).

It was a sign of the times at the end of last year when the amount of assets invested in US passive funds reached $13.3tn, according to Morningstar, just pipping the $13.2tn invested in active funds. Another signal in January was the decision of Abrdn, the active manager, to shed a tenth of its staff in a cost-cutting exercise, having previously lost most of the vowels in its name.

New WFE Research quantifies the impact of stock exchanges on economic growth

January 6, 2025--The World Federation of Exchanges, the global industry association for exchanges and CCPs (The WFE), has published new research which analyses the link between stock market development and economic growth on a global scale.
The research analysed quarterly data from 36 countries over two decades (2003-2022).

5 transformational trends shaping global finance

January 6, 2025--The global economy has undergone seismic changes since the pandemic.
Major structural shifts are underway, shaped by five fundamental forces:
Deglobalization, decarbonization, debt, digitalization, and demographics.
The global economy is very different now compared with even just a few years ago.