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.

IMF World Economic Outlook -Global Economy in Flux, Prospects Remain Dim October 2025

October 14, 2025-- While the near-term forecast is revised up modestly, global growth remains subdued, as the newly introduced policies slowly come into focus
The global economy is adjusting to a landscape reshaped by new policy measures. Some extremes of higher tariffs were tempered, thanks to subsequent deals and resets. But the overall environment remains volatile, and temporary factors that supported activity in the first half of 2025-such as front-loading are fading.