Investor Economics Insight October 2018

Research on Passive and Actively Managed Funds Globally by Strategic Insight

Given that global investment fund assets approached the US$40 trillion mark in late 2018, one would expect to find nearly everyone involved in the business—and especially fund manufacturers—celebrating the milestone with enthusiasm. Nothing, however, could be further from the truth. Despite the sheer scale of the business, at a global and often at a local level, the funds industry has been undergoing a deep transformation that goes beyond its vast assets under management (AUM). Among other challenges, the shift to passive investing, declining fees, regulatory scrutiny and changing advisor practices are some of the common issues wealth managers are facing across different jurisdictions.

The October Insight lead story delves into the key trends in asset growth and sales across the main global regions for the funds business, with a special emphasis on the expansion of passive strategies. The Trendlines article looks at the recent sales momentum of major asset classes in Canada.