Musical chairs: Survey shows plans to both fire and hire asset managers
One way or another asset managers are in for a bumpy ride this year as many are likely to be replaced.
At least that’s the scenario according to Mellon Transition Management, part of BNY Mellon Asset Management, which says a record number of global pension funds and endowments are planning to change asset managers as they try to reduce risk.
Just in case anyone is wondering why BlackRock is trying to snap up Barclays Global Investors, a small reminder dropped into my mailbox today with a preview of research on the exchange traded fund industry, albeit delivered by BGI.
It quotes data from mutual fund consultant Strategic Insight to the effect that net sales of mutual funds were minus $6bn in the first three months of the year compared to net sales of $7.7bn for ETFs, one good reason why the US money manager might be keen to get hold of BGI’s business.
White knuckle ride ahead
Asset managers should grit their teeth for a painful year ahead. Banks and hedge funds may have been taken to the extremes of their pain thresholds already but it’s yet to happen to active managers.