Asset managers fear hit to profits; consider passive launches

A group of asset managers surveyed by Portfolio Adviser unanimously agreed that the industry will become less profitable over the next three years.

Asset managers fear hit to profits; consider passive launches

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Notably, respondents were largely ambivalent about the FCA market review. Only 23% viewed it as a negative for the industry, compared with 77% who were neutral.

However, all participants agreed there would be some kind of impact from increased competition from passive alternatives, with reducing fees down on mainstream funds considered the most likely outcome (77%).