BlackRock Sole Exception, As Active Managers Continue To Feel Crunch

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 compliance cost and a market environment where high stock prices and “global macro...