The seismic shift in how advisers operate their businesses, driven largely by regulation, is just one of the factors behind the popularity of passives, writes Jon Everill
The concept of passive investing has been around for some time now. In fact, it first emerged as an investment strategy back in the 1970s. Some forty years on, this investment approach has grown considerably in popularity - so much so that according to the Investment Management Association (IMA), net retail sales of tracker funds jumped up from £1.8bn in 2012 to £3.2bn in 2013. Today, passive funds account for 10.2% of total funds under management in the IMA universe. This trend is not unique to the UK but is ubiquitous across the world and the global market share of low-cost passi...
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