Moody's Cuts Outlook On Global Asset Management Industry Amid Fees, Passive Headwinds

Moody’s has cut to negative its outlook for the global asset management industry, which continues to be roiled by a steady shift toward low fee and passive products. Its view is so grim the ratings agency ruled out anything that might change its outlook to positive at this time. However, a stable outlook could result if active funds perform better, rotation into passive products is moderate, and cost pressures and margins stabilize or ease. “Active management performance continues to underwhelm,” Moody’s said, explaining its outlook downgrade. Consequently, clients’ skepticism of active management’s value proposition increases, it added. The rise of…