2015 Could Be Another Be Difficult For Active Managers

RBC Capital Markets says in 2015 the asset management business could face many of the same challenges in 2014, with a move to passively managed funds continuing and perhaps hastening, according to a new report from analysts Eric N. Berg, CPA, Bulent Ozcan, CFA, and Kenneth S. Lee .

Active managers will continue to close shops

Actively managed funds who underperform the broader stock market benchmarks or don’t provide noncorrelated returns streams or downside protection — in effect offering no unique benefit to the investor — will continue to close shop.

In a January 8 equity research piece, RBC analysts Eric Berg, Bulent Ozcan and associate Ken Lee see increased use of...