On December 4th and 5th, against the backdrop of the United Nations Climate Change Conference,

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battle against climate change. Register at Bloomberg Live.com slash B Green Radio. Hello and welcome to Tracy Allaway.

Tracy do you remember our episode a few weeks ago with Mike Green?

I do indeed. episode a few weeks ago with Mike Green.

I do indeed fantastic episode.

Yeah this idea and of course for those who don't recall it or those who maybe haven't

listened to it.

The topic was, what are the sort of distortions

in the market that are being caused by the rise of passive investing?

People are just throwing money month after month, paycheck

after paycheck in the index funds. A lot of people think it's a really good trend,

but there is more attention and more questions being raised by what does it really mean for markets

and market structure when so much money isn't going towards individual security selection?

Right. There's this assumption that passive investing is actually good in many ways because investors are

paying lower fees, so over the long run they make more money, but also in the sense that passive investing

because you're just putting money into these big benchmarks that are

reflective of the market as it is that you're not actually impacting the market at all.

And only now are we starting to see some real criticism of that thesis

...