Firms launching more active funds should rejoice.

InvestmentNews' Jeff Benjamin reports that financial advisers are warming up to active management for the next market cycle. Kevin Malone, president of Greenrock Research, said he thinks the best days of active management are ahead as upcoming market volatility makes investors itch for savvy stock pickers.

Benjamin quotes Malone as saying, "But now we're at the point where there are expectations for slow growth for the next few years, and that's why we believe high-quality companies will be the types of investments that investors will want to gravitate toward."

Actively managed equity funds had more than $443 million in total net outflows and index-based funds had $245 billion in total inflows over a trailing five year period, Benjamin points out. They haven't been doing great in performance either as they were outperformed by equity index funds year-to-date and in trailing one, three and five year periods, Benjamin reports.

To read more, click here.  

Edited by: Casey Quinlan


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