Campbell Fleming: Active and passive must learn to get along

It has, to put it mildly, been a good year for passive investment funds that track a broad market index like the FTSE 100. Much of it has been at the expense of their active peers, which try to seek out undervalued investments. Almost $500bn (£385bn) has moved from the latter to the former so far this year. This keeps up a trend that has seen massive flows from active to passive strategies in recent years and the gradual growth of passive over the past 30 years. The predictions of the imminent demise of active management that have followed are wrong. After all, PwC predicts actively m...