Asset Managers Bleed $50 Billion as Industry Crisis Deepens

  • Franklin, Waddell, Alliance had biggest quarterly redemptions
  • Investor shift from active to passive funds accelerating

The business of picking stocks and bonds for clients is getting smaller by the day.

Seven top asset managers this week reported a total of $50 billion in third-quarter net redemptions, most of it from active funds, company filings show. The biggest losers: Franklin Resources Inc. with $22.1 billion, AllianceBernstein with $15.3 billion and Waddell & Reed Financial Inc. at $4.9 billion.

In the second quarter, that group of seven saw $34 billion in outflows. The tally is further evidence that investors, frustrated with high fees and mediocre performance of actively managed funds, are increasingly casting them off for low-cost passive investments. In the 12 months ended Sept. 30, active funds had redemptions of $295 billion while passive took in $454 billion, according to data from Morningstar Inc…

Asset Managers Bleed $50 Billion as Industry Crisis Deepens

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