ETF-ization / death by ETF

This could lead to a much better cohort of active managers, who are able to take advantage of misvaluations created by the crowding of assets flows out into passive investments. It just may take a lot longer for the misvaluations to be corrected.

With more and more money flowing into ETF tracker funds, as we look across the active and passive landscape for appropriate investments, including across many different asset classes and markets, we have never held a stronger view that good and proper active managers can add really good long-term absolute and relative value for our clients.

David Thornton is senior fund manager at Premier Asset Management