Passive investing

Too big to fail? Twenty funds capture 87 per cent of investment flows in a month

Too big to fail? Twenty funds capture 87 per cent of investment flows in a month

A handful of the highest-raising investment funds are scooping the vast majority of all money invested in a month, raising concerns that large passive managers are becoming “too big to fail”. On average, 87 per cent of monthly net investment flows go toward the top twenty funds alone, according to exclusive data from EPFR. 

Digital

Asset managers’ dash to digital accelerates amid rising pressure from clients

Asset managers’ dash to digital accelerates amid rising pressure from clients

Asset management firms are accelerating their digital transformation, with almost half planning to boost their digital spend in the coming year. The push to digitalise been driven by the rise of low-cost passive investing and digital-first challenger banks, which have squeezed the margins of traditional asset managers.

Diversification

Challenging groupthink: Willis Towers Watson says most active managers over-diversify to reduce investment risk

Challenging groupthink: Willis Towers Watson says most active managers over-diversify to reduce investment risk

“Knowing more about less”: this is how Willis Towers Watson describes the process of researching fund managers. “There are 18,000 asset managers. There are more asset managers than there are stocks in indices,” says Chris Redmond, head of manager research at Willis Towers Watson. “We cannot possibly devote our time to every one of them.”