Question: (b) Active managers exposed as most US equity funds lag behind market, Financial Times, September 23, 2016. In the above article, it stated that money

(b) "Active managers exposed as most US equity funds lag behind market", Financial Times, September 23, 2016. In the above article, it stated that money has been draining out of actively managed funds and moving into index tracker funds at an accelerating pace in 2016. Critically appraise the arguments as to whether fund managers should therefore use purely passive investment strategies or whether investors should use, for example, a combination of active and passive strategies or smart beta" strategies when constructing a portfolio (13 marks)

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