FYI: The fund industry is going through a period of upheaval, raising questions about the prospects for smaller asset managers. Allianz Global Investors, which oversees $612 billion in assets, is taking a purist approach to survival.
One reason active managers have struggled is because they’ve been forced to become less active, says Allianz Global Investors Chief Executive Andreas Utermann. For instance, they’re less able hold a large stake of cash when there are few appealing investments, and many are pigeonholed to their style boxes, afraid to veer too far from their benchmark. On top of that, many active managers failed to reprice their funds as exchange-traded and index funds’ fees approached zero.
Regards,
Ted
https://www.barrons.com/articles/space-exploration-esg-and-specialization-as-the-future-of-the-fund-industry-1539367856?mod=hp_DAY_5
