FYI: It was a rough week for the asset management industry. A Moody’s report predicted a 4.4% decline in revenue from management fees for the last quarter of 2018, and noted that investors pulled more than $200 billion out of mutual funds in the same period. Market volatility is a big factor, but so is the price of investment products. And the purveyors of some of the cheapest products are feeling the pinch: BlackRock , which owns the nearly $2 trillion iShares, is laying off 3% of its workforce, about 500 people; State Street , which offers the $245 billion SPDR S&P 500 exchange-traded fund (ticker: SPY), is expected to cut its senior management staff by 15%.
Regards,
Ted
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