Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating: Email Routing List Email & Route  Print Print
Wednesday, July 27, 2016

"A Few Surviving Winners Managing Large Amounts of Capital"

News summary by MFWire's editors

An analyst who watches the mutual fund industry is painting a bleak picture of fundsters' collective future.

In a new Moody's report, "Asset Managers -- Global: Industry Flows, Actively Moving to Passive", vice president and senior analyst Stephen Tu and his colleagues write that, "given the scalable nature of quantitative investing, the large number of smart beta managers is also likely to shrink to a few surviving winners managing large amounts of capital."

Barron's and ETF Trends both highlighted the Moody's report.

Tu and his colleagues worry about the efficacy of active asset managers M&A activity, like buying each other or buying into the ETF and smart beta businesses. The report includes concerns about overcapacity in the active asset management space.

"These managers view M&A as a strategy to address the passive trend," the report reads. "However, although there may be cost synergies, in most cases, this type of M&A is not a long-term solution since it does not reduce the amount of capital managed by active managers, so overcapacity continues to hamper performance [of asset managers' stocks] ."

"A fundamental rethinking of the traditional active mutual fund industry as a whole is required, including a re-emphasis on investment performance over growth and marketing, and more discipline in curtailing AUM and management costs," the Moody's folks conclude in the report. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2021: Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF Director Discussion Series - Open Forum via Zoom, January 27
  2. Nicsa webinar - Investment Data Science: A World Outside of Spreadsheets, January 27
  3. MFDF webinar - Post-Election Insights on Regulations and Issues That Affect Mutual Funds, January 28
  4. MMI Executive IQ Webinar: The 2021 Leadership Imperative, January 28
  5. ICI webinar - DOL's Stance on ESG Investments: A Look Ahead to 2021 and Beyond, January 29
  6. MFDF webinar - A New Fair Valuation Framework for Fund Directors, February 3
  7. MFDF Director Discussion Series - Open Forum via Zoom, February 10
  8. ICI webinar - ESG Fund Investing: The 2021 Landscape, February 16
  9. MFDF Director Discussion Series - Open Forum via Zoom (West Coast), February 24
  10. NICSA 2021 Strategic Leadership Forum, Feb 24-26
  11. IDC Foundations for Fund Directors, Mar 1-2
  12. MFDF Director Discussion Series - Open Forum via Zoom (Midwest), March 10
  13. 2021 Virtual Mutual Funds and Investment Management Conference, Mar 15-19
  14. ETFGI Global ETFs Insights Summit - ESG & Active ETF Trends, Mar 24-25
  15. MFDF Director Discussion Series - Open Forum via Zoom, March 24
  16. MFDF Director Discussion Series - Open Forum via Zoom, April 7
  17. ETF.com Awards 2020, April 20
  18. MFDF Director Discussion Series - Open Forum via Zoom (Northeast), April 21
  19. 44th Annual AIMSE Marketing & Sales Conference, May 2-4
  20. MFDF Director Discussion Series - Open Forum via Zoom (Southeast), May 5
  21. ICI 2021 General Membership Meeting - Day 1, May 6
  22. ICI 2021 General Membership Meeting - Day 2, May 13
  23. 2nd annual ETFGI Global ETFs Insights Summit - USA, May 19-20
  24. MFDF Director Discussion Series - Open Forum via Zoom, May 19
  25. ICI 2021 Operations and Technology Conference, May 20
  26. MFDF 2021 Fund Governance & Regulatory Insights Conference, Jun 10-11




©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use