By November, investors have withdrawn a total of $286 billion from US investment funds. Morningstar data shows that 30 of the 50 largest asset management companies have faced net outflows. Thereby, 2016 could become the worst year for active funds on record. At the same time, investors have invested 428.6 billion dollars in passive funds. ETFs remain on a growth path and gain additional market shares. While the AuM in ETFs accounted for 13 percent of the assets of traditional funds in 2011, it was 20 percent at the end of November.
Experts are now expecting further consolidation in the fund industry. Thomas Faust, CEO of Eaton Vance Corp., expects further mergers because there are more asset managers than the world needs. Asset manager will also have to shrink, for example, by giving up products that are not attracting sufficient capital or by outsourcing administrative activities, says the Boston Consulting Group.