Only 36 percent of stock-picking managers survived or outperformed their average passive peer over the past 12 months, according to Morningstar data.
“Passive investment is now growth-tilted, momentum chasing, biased toward popular-weighted indices. Why should you expect the best returns from that?” asks Research Affiliates’ Rob Arnott.
The equity fund carries a management fee of 75 basis points, while the fixed income fund carries a 15 basis point fee.