Asset managers see $50bn redemptions

Money On Hook

The business of picking stocks and bonds for clients is getting smaller by the day.

Bloomberg News reports that seven top asset managers this week reported a total of $50bn in third-quarter net redemptions, most of it from active funds, company filings show.

The biggest losers: Franklin Resources with $22.1bn, AllianceBernstein with $15.3bn and Waddell & Reed Financial at $4.9bn.

In the second quarter, that group of seven saw $34bn in outflows. The tally is further evidence that investors, frustrated with high fees and mediocre performance of actively managed funds, are increasingly casting them off for low-cost passive investments. In the 12 months ended September 30, active funds had redemptions of $295bn while passive took in $454bn, according to data from Morningstar.

“The shift from active to passive is an accelerating secular trend,” said Benjamin Phillips, a principal with the consulting firm Casey Quirk by Deloitte. “It is not going away.”

To access the complete Bloomberg News article hit the link below:

Asset Managers Bleed $50 Billion as Industry Crisis Deepens

Carney’s Future at BOE Overshadows U.K. Interest-Rate Decision

Have something to tell us about this article?

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...