State Street Global Advisors, a $2.6 trillion asset manager, is a huge player in the passive investment movement, developing index and exchange-traded funds that provide cheap ways for Main Street to invest. The passive trend has some people worried that ETFs are warping the stock market. State Street also has an active investment management business, and a $26 billion investment chief there, Paul Colonna, says passive flows have impacted his work. Despite the headwinds, Colonna is optimistic about active management for the long-term. Paul Colonna is State Street's chief investment officer for active fundamental equity, overseeing $26 billion globally. He's overseeing the active investment equity unit at a company that is much more well known for its passively traded funds.

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