Active or passive? The credit crunch test

Five years on – almost to the day depending on when you’re reading this – from the collapse of Lehman Brothers and the start of the credit crisis, that now-familiar, sinking feeling remains: the economy is still struggling. Following the exit of Lehmans and the many other institutions that went the same way, investors sought fund managers that could soften the blow on the way down but were ready to pounce at the first sign of a recovery. And, with the costs associated with active management making headlines, many advisers turned to lower-cost passive vehicles for a solution. Were they...