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

S&P report predicts passive fees could hit zero

Laura Dew
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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...

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