Move to passives an opportunity for active managers - Dan Kemp

ETPs attracting record flows

Natalie Kenway
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Dan Kemp: "In a way, people are being too active in the way they approach passives. It is that constant temptation to chase recent past performance."
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Dan Kemp: "In a way, people are being too active in the way they approach passives. It is that constant temptation to chase recent past performance."

Dan Kemp, CIO of the EMEA business at Morningstar Investment Management, has highlighted an array of benefits from the rapid rise of passive investments, although he also warned of risks such as overtrading.

His comments come as exchange-traded products (ETPs) attracted record inflows in the first quarter of 2017, taking in $189.1bn globally and far outpacing the previous record of $137.8bn in Q4 2014...

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