James Klempster: Keeping the faith with active investing

Active investment management has had a torrid time in recent years. Depending on which survey you read, the performance of the average manager has achieved somewhere between ‘bad' and ‘abysmal'. This negative perception - coupled with the significant fee savings possible in passive vehicles in combination - can, in the right hands, make a compelling case against active investment management. What is more, recent liquidity issues with a well-known investment manager has put another nail in the coffin of the so called ‘star manager' culture, adding fuel to the pro-passive pyre. And yet ...