Moody's Investors Services has downgraded its outlook for asset management firms from stable to negative, citing in part the added pressure on mutual fund fees expected after the Labor Department's fiduciary rule is implemented.
Between 2007 and 2015, the rotation of assets into passively managed mutual funds and exchange-traded funds vastly outstripped flows into actively managed mutual funds, which yield fund companies higher fee revenue.
Over that period, $1.5 trillion flowed into ETFs, and $700 billion flowed into passively managed mutual funds. Just over $400 billion flowed into actively managed mutual funds during the nine-year period ending in 2015, according to Moody's.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
