The asset management industry is currently in the midst of an enormous structural shift. Years of underperformance and closet indexing by high cost active managers is forcing investors into low-cost tracker funds. According to Bank of America Merrill Lynch’s latest weekly flows report, since 2002 there have been $1.4 trillion of inflows into passive ETFs verses $1 trillion of redemptions from active mutual funds. Year-to-date $260 billion has flowed out of US long-only equity mutual funds, 3.9% of industry assets under management. In comparison, US equity ETF’s have attracted $74 billion year-to-date, 3.3% of industry assets under management.
- Michael Mauboussin – Active Asset Management
- Risk And Returns: A Dangerous Mindset – Broyhill Asset Management
- Platinum Asset Management:
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