Royal London warns of dangers 'if passives popularity goes too far'

The company said passive investing in shares now accounts for about 40% of all assets under management, which it said has been driven by the failure of many active funds to consistently outperform the market and the fall in passive investing costs.  Royal London's asset management arm said it endorsed the use of passive funds but warned of a number of downsides if passive investing "were to be totally dominant". If this were the case, it said investors would be locked in to poorly performing shares, and they would be less able to diversify by investing outside the index.  It also said...