T. Bailey question passive fund performance claims

While passive funds are marketed on their ability to access indices own performance, T. Bailey disputes whether they can actually track the index closely. The multi-manager boutique compared the performance of FTSE All-Share index tracking funds with active funds in the IMA UK All Companies sector relative to the FTSE All-Share index over 15 years using Lipper data. The resulting research found that while both underperformed the index trackers fared worse. The FTSE All-Share Index tracker funds underperformed the index by 24.7% on average. T. Bailey says there are two areas where perf...