The fourth quarter of 2016 saw many major asset managers experience net outflows, a Moody’s report observes, while asset managers generated $529.8 million in performance fees, down 1.1% year over year, as passive investments continued to pressure active managers, reducing their fee income. Moody’s goes negative on asset managers for a variety of reasons, including market tail risk Moody’s 2017 outlook for global asset manager stocks is negative, Jordan Schoenberg and a team of US asset manager analysts stated. The negative outlook is driven by the trend towards investors moving into passive products, pressure on fees, regulatory developments and increased…
BlackRock Sole Exception, As Active Managers Continue To Feel Crunch
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.