Pensions & Investments has observed from its various surveys a continuous increase of large-cap U.S. equity assets shifting to passive strategies. Institutional passive large-cap assets under management increased 12.1% annually over the past 11 years, while active strategies have increased only 5.7%. Passive now represents 56% of the total. The movement can be partially attributed to S&P 500 mandates within defined contribution plans.
The majority of U.S. equity mandates excluding large cap are still active. However, only 67% of AUM is currently in active strategies overall, down sharply from 83% in 2008.
In contrast to equities, U.S. fixed income remains largely active, with 77% of AUM still in active strategies, down only slightly from 82% in 2008.
