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Yes, Active Managers Can Outperform

Harding Loevner’s Apurva Schwartz, a member of the Active Managers Council’s Research Task Force, takes on the myths surrounding active management. Ms. Schwartz describes how active managers can and do outperform the benchmark, the importance of active management in a portfolio, and how skilled managers can be identified in advance.

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Taking on Active Management Myths

There are misconceptions about active and passive investing. Geoff Warren of Australian National University breaks down the data and explains what the research is getting right and wrong about active management.

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Outlining Legal Context for Fiduciaries

Our new paper is an updated resource for plan fiduciaries that gives a general understanding of their legal responsibilities, and it is the first summary for plan fiduciaries that incorporates the latest DOL regulation on investment selection.

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Understanding Active Management

Our new animated video gives a brief tutorial on active management, explaining the differences between active and passive and highlighting how active benefits all investors.

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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.

Active Managers Council Site Links

• Council Homepage
• About the Council
• What is Active Management?
• Active Management FAQs
• Blog
• Publications
• Videos and Webinars
• For Members
• Contact the Council

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

“Active managers have a variety of skills and tend to make value-added decisions, after accounting for all costs, many actively managed funds appear to generate positive value for investors.”

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

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“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

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“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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