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[$$] Asset allocators need to keep an eye on never-ending changes

While the column brings into sharp relief the importance of asset allocation, it also highlights one often overlooked aspect that allocators have to deal with: the need to keep an eye on never-ending changes at the fund level, including changes to portfolio managers, changes in investment styles, and changes to fund company ownership. Keeping in mind that there are many more mutual funds than there are individual stocks, this is no easy task. Putting all this together, Mr Authers has actually reinforced my view that in the long run, active management based on constructing a diversified portfolio of individual stocks may be more effective than either active management through a mutual fund, or passive management via an index.