Active managed funds need better measurements: Morningstar report

Investors are weary of being overcharged by closet indexers posing as active fund managers, but a new report has found that measuring the performance of active managers is not as clear cut as it seems. Active share has been commonly used by investors to measure a fund manager’s activity against a passive benchmark, but a new report from investment research firm Morningstar titled ‘Context is everything when using active share’ has found that the method is highly context-dependent.…