Active Managers Council

About the Active Managers Council

The Active Managers Council is the premier industry voice for active investment management. Its mission is to advocate for a more balanced narrative on active and passive management and to provide education about the benefits of active management and its vital importance to the securities markets.

Both active and passive play important roles in investment management. However, a misleading narrative has emerged, pitting active against passive in a false dichotomy. The Council seeks to help investors by sponsoring and curating research, hosting educational events, and serving as a resource for investors and policymakers seeking to learn more.

Why Active AND Passive?

Benefits of Active Management

√ Opportunity to Earn Superior Returns

√ Manage Risk

√ Focus on Dividend or Interest Income

√ Tax Management

√ Advance Mission-Based Goals

√ Integrate ESG Factors

√ Invest in Alternative Asset Classes

√ Customize Portfolios

Benefits of Passive Management

√ Lower Cost

√ Market Returns

√ Transparency

√ Tax Efficiency

What the Experts Say

“We found very strong positive performance persistence for equity funds with the highest active shares. . . We have a lot more evidence that the conventional wisdom needs to be updated.”

— Professor Martijn Cremers, Mendoza College of Business, University of Notre Dame

Listen Now

“All investors, both active and passive — as well as the real economy — benefit from the efforts and cost expenditures of active managers.”

— Professor Russ Wermers, Robert H. Smith School of Business, University of Maryland

“It is wrong to form the general conclusion that there is clear academic evidence that active managers do not create value for investors on average.”

— Associate Professor Geoff Warren, College of Business and Economics, Australian National University

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