Pressure is mounting on money managers as investors pull out their assets — so much so that a group of highly competitive rivals held a conclave in New York last month to talk over the problem.
About 60 mutual fund executives met on Nov. 2 for the "Seismic Shift Senior Leadership Forum" to discuss ways to stop clients from withdrawing their money, The Wall Street Journal said in a report on Tuesday. The newspaper said details of the meeting had not been previously reported.
Mutual funds, which are managed by professionals who collect fees, are having a harder and harder time competing with so-called passive investing strategies, which let people invest less expensively in groups of stocks that can range from cybersecurity companies to the full S&P 500 index. Passive investing is usually carried out through exchange-traded funds, or ETFs, and passively managed mutual funds.
Index funds also have the benefit of always at least matching the market — something actively managed funds obviously can't guarantee.