Dougherty says: “We do believe that pursuing active returns is a worthwhile activity provided that the resources exist to have a competitive advantage in identifying, hiring and terminating active managers. Equally, we believe in the virtues of passive management and continue to advise that this is an appropriate route for those funds which are unable to bring a competitive advantage to the manager selection process.

That said, we are very mindful of the fact that passive management firms are not immune from many of the business issues facing active managers.”