Is Active Fund Management Stuck in the Past?

The financial industry is often seen as fast-moving and innovative — but is that reputation deserved?

In this episode, we dive into the surprising realities of active fund management with Professors Yuval Millo (University of Warwick) and Crawford Spence (King’s Business School), two of the authors behind Inertia: Purposeful Inefficiencies in Financial Markets.

Drawing on interviews with around 70 active fund managers and equity analysts across the UK and US, Millo and Spence reveal a world where risk-taking is punished, mediocrity is rewarded, and even industry insiders avoid the very products they sell.

Why does this inertia persist? What does it mean for the future of active investing? And why do so many financial advisers still push active funds?

Tune in for a thought-provoking conversation that lays bare the inner workings — and contradictions — of an industry resistant to change.