Moody's: Active management will 'shrink substantially' as passives popularity grows

S&P report predicts passive fees could hit zero

Laura Dew
Moody's: Active management will 'shrink substantially' as passives popularity grows

The combination of active fund underperformance and tighter scrutiny on fees is placing the future of active management under threat as investors increasingly choose low-cost passive options, according to rating agency Moody's.

In a new report Industry Flows Actively Moving to Passive, the firm found passive investments made up one-third of the US mutual fund market and this proportion is expected to grow further. This demand...

To continue reading this article...

Join Investment week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space

  • Get ahead of regulatory and technological changes affecting fund management

  • Important and breaking news stories selected by the editors delivered straight to your inbox each day

  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts

  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Funds

Former fund manager Neil Woodford

Link invests more into Woodford stock Mafic

Fund now sits at £124.3m

clock 30 November 2021 • 1 min read
UCITS and AIF assets grow in Q3

Retail investors show 'confidence' in long-term UCITS funds in Q3

H1 marked by “significant” reallocation, says EFAMA

clock 29 November 2021 • 1 min read
Richard Staveley is expected to act as a consultant to Harwood as the trust is wound down

Gresham House Strategic board sets out two-year managed wind-down of trust after collapse of review

B share scheme ‘fairest’ way to return capital to shareholders

clock 29 November 2021 • 2 min read