It’s finally happened. For the first time in 26 years, and only the second time in Premier League history, all three promoted teams have been relegated the following season. Such is the quality of England’s top division that simply surviving is a considerable achievement.
It’s a similar story in active fund management. There are more professional investors around the world competing with one another than there have ever been. Added to that, they have access to more information than at any time in the past, and the technological resources at their disposal continue to improve, year after year. Is it any wonder that genuine and consistent outperformance is as rare as it is, or that funds come and go at such a remarkable rate as they do today?
A crucial point that many investors fail to grasp is quite how many funds there are to choose from. According to one estimate, there are currently around 19,625 listed investment funds worldwide. A few years ago it was the growing demand for sustainable investments that was driving product innovation; nowadays it’s artificial intelligence. Asset managers are increasingly using AI technologies, not only to make their operations more efficient but also to help devise and implement new investment strategies.
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