The failure of active managers to meet their index benchmarks is just one of many reasons why investors are abandoning active management for passive strategies. The chart below shows the movement of investments from actively managed funds to passively managed funds between 2007 and 2014.
Accumulative flows into equity funds. Source: Investment Company Institute
While we have been proponents of passive, index-based strategies for twenty years, it is always encouraging to see others embrace an approach we know to be effective.