Are we hopeful that at some stage soon we hit the bottom as major headwinds for traditional asset management industry subside. Namely
- Active to passive
- Alts (private markets in particular) taking higher allocation
- Fee pressure
- AI
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Asset Management is doing quite well tbh. BCG Expand: https://www.bcg.com/publications/2025/reinventing-growth-amid-market-volatility
”Last year, investors continued a long-term trend of shifting from actively managed funds to passively managed products. Active AuM declined from 65% in 2023 to 61% in 2024 for mutual funds and ETFs. Net new flows reflected this trend, with $0.1 trillion in outflows from active funds, excluding money market funds, versus $1.6 trillion in inflows to passive funds.”
I think the slow job market is unrelated to AM as an industry, it’s a global thing
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I ment traditional active long-only equities asset management sub-secor
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I agree. I am not in asset management but I have been around. This is the worst it’s ever been
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All is driven by US, all credit flows from US, whenever US economy is not doing good ( not the stock market ), the job market worldwide suffers, the interest rates define the outflows to the world. Every dollar coming out of the US means more work for the world.
It all started in 2022 when US govt wanted to contain inflation and increased interest rates and since then Big tech and other companies as well got less money to offer because they were literally hiring on the money from dollars coming out from the Fed.
Since then it never recovered, if US do good, world gets to earn money.
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