Uncertain times: Why 2014 is not the year for passive investing

With cost control at the forefront of many advisers’ minds, passive solutions have gained significant traction. ETFs have continued to grow their presence in the UK, with major US players such as Vanguard offering its wares here since 2009. While the passive industry took 19 years to reach its current $1trn, it is predicted it will take only a further four years to double assets under management. While we do not underestimate the pressure on advisers to provide cost-effective solutions, we would argue that active management is essential to providing stable, consistent returns for the for...