Has the popularity of passives started to peak?

Figures from the Investment Management Association (IMA) show the number of available tracker funds is up 11% on the start of the year, rising from 63,921 to 70,852 by the end of the third quarter, comprising 9.6% of the industry total – a record high. Their increasing prominence has led investment services provider Morningstar to issue a ratings system for passive funds as a reaction to their growing popularity. Yet, a survey of advisers carried out by Schroders indicates the industry may be approaching a "ceiling" where passives are concerned. Two thirds of the 328 advisers asked...