Passively managed products

A growing body of research is looking into whether the expanding influence of passively managed funds is making companies less willing to compete.

BlackRock will see the largest reduction to its workforce since 2016.

The top 20 are now home to nearly $1.2 trillion in combined assets.

The firm says clients can achieve similar risk-return exposures and long-term returns with a well-diversified portfolio.

A record 186 funds were shuttered last year. What does this mean for the future of the industry?

Investors have grown cautious following October’s rout in global markets.

New actively managed municipal bond ETFs from the firm have attracted $50 million in assets since their inception in October.

With the number of U.S. indexes far outstripping stocks, anxiety is mounting over whether the funds artificially inflate share prices, fueling bubbles.

The net outflows are staggering, but recent studies show the relationship is far more nuanced.

The expense ratios for these funds were closer to that of the average actively managed equity mutual fund.

Fees were nearly half the price of the top-performing active funds.

Just 36% of actively managed stock funds topped indexes in the year through June, down from 43% in 2017, according to Morningstar.

Fee wars are great for clients, but don’t judge a fund solely on its expense ratio.

“Are we reactive to what one competitor does? Absolutely not,” CIO Greg Davis says.

Inflows have slowed? Actively managed funds would like to have that problem.

The funds raked in a combined $840 million last week despite competitive hurdles banks typically face going up against money managers’ core products.

The closure could signal that remaining retail players are short on patience for neutered products.

The asset manager's flows are down 42% year-over-year. The industry: 50%.

The bank has replaced dozens of high-cost offerings with more passive and enhanced actively managed products.