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As Passive Investing Grows Bloomberg Terminal Suffers

TedTed
in Fund Discussions
FYI: It seems passive investing is even starting to hit the likes of the Bloomberg Terminal , which according to the Financial Times and research by Burton-Taylor International saw the number of its Bloomberg terminals drop by 3,145 in 2016, only the second time in history such a drop has been recorded. Morgan Stanley predicts that Bloomberg Terminal revenue could decline by billions over the next few years.
Regards,
Ted
http://www.valuewalk.com/2017/03/passive-investing-bloomberg-terminal/

Comments

  • rforno

    "Passive fund managers have no need for the comprehensive fundamental data provided by the Bloomberg terminal and as active managers look to cut costs, reducing the number of high cost terminals will likely be the first action taken to reduce spending."

    No, managers of INDEX FUNDS (which happen to be passive) don't need a Bloomie terminal since they're just replicating whatever the index does. A fund with a turnover of 15% or less, in my view, is pretty 'passive' and the data provided by a Bloomie terminal can be quite helpful to them.

    I respectfully submit that "passive" does not always mean "index fund."
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