There are only so many cuts an asset management firm can make before the very essence of its being, performance, is threatened, MarketWatch reports.

So far, most of the job cuts at asset management firms have been in operations. However, said Stephen Savage, editor of the No-Load Fund Analyst newsletter, “if the fund is changing because of what is happening with the parent company—if assets are way down or the manager is leaving or the analysts are being laid off—you’ve got something to think about and keep an eye on. None of these issues start out as ‘you-must-sell’ problems, but you can certainly see cases where the fund company has problems that wind up becoming problems for the funds.”

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.