FYI: It’s been a cruel month for U.S. asset managers.
BlackRock Inc., State Street Corp. and rivals have seen their shares take a hit as jittery institutional investors have seized up in choppy markets. The other culprits: weak revenue, lackluster fund flows and the perception that the industry is racing toward zero fees.
“For the next stretch it’s going to be tough going as investors are likely to shoot first and ask questions later,” Glenn Schorr, an analyst with Evercore ISI, said in a note to investors last week.
An S&P index of asset managers and custody banks is down 14 percent this month, compared with a 9.3 percent drop in the S&P 500 Index. Year to date, the asset managers index has lost almost a quarter of its value and it’s headed for the biggest annual loss since 2008.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-10-30/blackrock-s-october-plunge-leads-selloff-in-asset-manager-stocks
