There is a movement, a trend taking place and it “is not temporary,” a Moody’s Investor Service report observes. This isn’t a political movement that jeers at a political convention over mention of the nomination process victor. This movement is going to “accelerate.” Unlike the factions in politics, this movement from active to passive investing will lead to transformational change in the investment industry. Trend from active to passive started in 2000, was masked by stock market appreciation Real demand for active equity mutual funds saw its heyday in 2000, just prior to the “Tech Wreck” of 2001 that witnessed an…
Moody's – Inflows To Passive Funds No Temporary Trend
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.