Asset Management Fees Grow Despite Passive Headwinds

Like hedge funds specifically, asset manager fees overall are coming under pressure thanks to the growth of passive, but there is some good news for the sector. 2016 was a terrible year to be in the asset management business. According to research from the Boston Consulting Group, for the first year since the 2008 financial crisis, revenue earned by asset management firms globally fell in 2016 along with profits as investors shifted assets away from high cost, underperforming actively managed funds, towards low-cost passive investments. [timeless] According to the consultancy, revenue for the industry fell by 1%, and profits dropped…