Monitoring Passively Managed Mutual Funds [1]
Patrick J. Collins, CFA [2]
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 [3] and a structured-asset-class equity mutual fund and finds that compared with the index fund [4], 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 [5]
| Attachment | Size |
|---|---|
| MonitoringPassivelyManagedFunds .pdf [6] | 201.25 KB |