What? They should be putting their money where their goddamn mouth is.”That was the response from one well known but irate US investor when I told him that fund industry professionals appear to be touting the advantages of active management as part of their day job, while investing their personal assets in low-cost passive funds.Indeed, a poll by Ignites, an FTfm sister publication, of 1,001 fund staff – many of whom make their living promoting active products – reveals that two-thirds have a sizeable amount of their personal savings in passive funds. This includes 45 per cent who say they have a “significant” portion in passive products. Only one in five say they avoid passive funds altogether.The findings should not be surprising, given that three-quarters of active managers never actually beat the market – a statistic those in the fund business know all too well. It does, however, leave a bitter taste in the mouth.
