News > Wealth Management, Asset Management

Why Active Management Failed…and Didn’t

By Advisor Perspectives
Wealth Management, Asset Management


Passive equity strategies have seen massive inflows over the last decade, in part owing to active management’s struggles. But a closer look at the story within the story suggests that leaving active out of the equation could be leaving money on the table.

First, a little history on how we got here.

In the early 1980s, the baby boomer generation started to enter its peak earning years—and stepped into the biggest equity bull market in history. From 1981 through 1999, the S&P 500 Index delivered annualized returns of more than 17% (Display). More earnings and a wealth-building rally created a winning formula for investors.

Read more at Advisor Perspectives.

Photo: Jim Makos

Subscribe to our Newsletter

Be one of the first to experience the future of financial services