Passive Investing and Its Implications
The emergence of index money has been changing the behavior of institutional investors with index investing. We are seeing a ripple effect with how active long-onlys go about their business, the socially responsible investing (SRI) movement, and shareholder activism. All of these movements are converging to a unified mindset and it is important to understand that you can't think of index money as being passive. There is a wide range of investment styles and it is important to evolve and adapt to the dynamic investing landscape.