Disappointment with the long-term performance of active asset managers has caused sovereign wealth funds, which include the largest investors on the planet, to turn to passive asset managers.

John Nugée, a senior managing director in State Street Global Advisors official institutions group, one of a handful of banks or fund managers to have a unit that focuses on sovereign wealth funds, said in a briefing this morning: "The scale of losses which many active management styles experienced during the financial crisis has reignited interest in a greater use of passive portfolios."