If you lose money on actively managed funds, you lose the money. If you win money on actively managed funds, you get a small part of the win, and give away a large part of the win to the guy who was gambling (how large is clearly a contract question). If the part you give away is too big, you are playing a fools game. The article isnt describing how much was fixed costs and how much were bonuses paid on outperforming funds, so it's hard to tell if they are indeed playing a fools game, but it seems at least possible.
Why pay someone to gamble for you if he will take 95% of the winnings but not eat any of the losses? If this is this because the managed accounts actually under-performed to expectation - ok. If it is because you're paying too big bonuses on exceeding some easy to reach baseline - not ok.
I think that is a reasonable argument. .