Fewer, and slimmer, cats

In Will invest for food, the Economist looks at the growth in trackers over active funds.

Earlier generations of investors were prepared to believe that the returns achieved by fund managers were down to skill. Now it has become clear that the returns were the result of factors that can be replicated. Like shoppers on a budget, investors are trading down from expensive brands to white-label goods. That may put many active managers out of a job.

I can’t imagine many will be shedding a tear for those active fund managers left out in the cold, after they spent decades creaming off huge fees for what amounts to little more than chance successes.