To borrow a phrase from the late Queen Elizabeth II, most asset managers will be unable to look back on the first half of this decade with undiluted pleasure.
Indeed, asset managers will remember a global pandemic, two bear markets, political tension on all fronts, and a speculative frenzy that largely left them sitting on the sidelines. Sure, long-term assets under management (AUM) are expected to have grown at a respectable 8.7% annual clip by the end of 2024, but they will also remember the $1.5 trillion is projected to bleed out of active funds by the end of this year. The expected windfall from an aging population eluded active bond managers thanks to soaring yields and record outflows in 2022. Although market appreciation is projected to lead to boosted growth, these gains were heavily concentrated in U.S. stock funds, particularly the tech-heavy stocks.
By: Christopher Davis, Head of U.S. Fund Research, ISS Market Intelligence
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