Monitoring Passively Managed Mutual Funds
Patrick J. Collins, CFA
Journal of Investing
vol. 8, no. 4 (Winter 1999) pages 49 to 61

Summarized by Roger Ignatius, CFA

The author notes that passively managed structured-asset-class funds are not indexes. They require ongoing monitoring and review. He analyzes an equity index mutual fund and a structured-asset-class equity mutual fund and finds that compared with the index fund, the structured fund has a larger tracking error and shows evidence of providing added value.

CFA Institute members can download Fiduciary Duty to Monitor and Review Passively Managed Mutual Funds