Clients deserting pricey investment products in favor of cheaperalternatives have pushed not just the asset management industry butalso retirement advisors to change their ways.

A Financial Times report says that the rise of exchange-tradedfunds, to the tune of some $1.3 trillion, has accounted for much ofthe $1.6 trillion drop in active equity fund investments. Figuresfrom fund manager Bernstein indicate that the lower-costalternatives have pushed investment managers to look at other waysto do business as income falls for active fund managers.

Even BlackRock, which offers both active and passive productsand is the the world’s largest fund manager, laid off several stockpickers back in March andhas expanded its use of technology to make investmentdecisions.

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