MS: Traditional Asset Managers Are Under Threat As Fees Shrink And Robo Advisors Prowl

The money management industry is already under a significant amount of pressure from the rise of low-cost ETF’s, which are stealing business from relatively high cost underperforming mutual funds. And recently a threat has emerged in the form of Robo-advisers, low-cost asset management platforms that appeal to the younger generation who are unwilling to pay high fees to investment managers when computers could do the same job for a much lower cost. These are just two of the headwinds the asset management industry now faces. Morgan Stanley believes there are six disruptive threats for the industry on the horizon. Traditional…