Active management shrinks under index funds' pressure



Passive indexing is taking out more AUM, from active management. This trend is unstoppable and it is only right. Retail investors need exposure to very cheap, non synthetic, index funds.

Aberdeen recorded its 15th consecutive quarter of net outflows last month.

Amin Rajan, chief executive of Create Research, the asset management consultancy, said: "The threat from passives is keeping CEOs awake at night."