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Barron’s Features Council Commentary

Research Task Force member Apurva Schwartz talks about the benefits of active management, and why active and passive are both critical pieces of investor portfolios.

Taking on Active Management Myths

There are misconceptions about active and passive investing. Geoff Warren of Australian National University breaks down the data and explains what the research is getting right and wrong about active management.

Outlining Legal Context for Fiduciaries

Our new paper is an updated resource for plan fiduciaries that gives a general understanding of their legal responsibilities, and it is the first summary for plan fiduciaries that incorporates the latest DOL regulation on investment selection.

Understanding Active Management

Our new animated video gives a brief tutorial on active management, explaining the differences between active and passive and highlighting how active benefits all investors.

What is Active Management?

Active management is an approach to investing. In an actively managed portfolio of investments, the investor selects the investments that make up the portfolio. Active management is often compared to passive management or index investing.

Why Active AND Passive?

Benefits of Active Management

√  Opportunity to Earn Superior Returns

Manage Risk

Focus on Dividend or Interest Income

  Tax Management

  Advance Mission-Based Goals

√ Integrate ESG Factors

√ Invest in Alternative Asset Classes

√ Customize Portfolios

Benefits of Passive Management

  Lower Cost

  Market Returns


  Tax Efficiency

What the Experts Say

“Active managers have a variety of skills and tend to make value-added decisions, after accounting for all costs, many actively managed funds appear to generate positive value for investors.”

— Professor Martijn Cremers, Mendoza College of Business, University of Notre Dame

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“All investors, both active and passive — as well as the real economy — benefit from the efforts and cost expenditures of active managers.”

— Professor Russ Wermers, Robert H. Smith School of Business, University of Maryland

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