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The Asset Manager Arms Race Has Only Just Begun

The Asset Manager Arms Race Has Only Just Begun It was a banner year for mergers in money management as the continuing fee war squeezes margins. Don’t expect it to slow down in 2021. Brian Chappatta | Dec 16, 2020 (Bloomberg Opinion) For years, the asset-management industry has braced itself for shocks. In 2018, $369 billion poured out of long-term mutual funds in favor of exchange-traded funds, a record at the time. In 2019, the case for traditional actively managed mutual funds became even harder to make when Charles Schwab Corp. jump-started a race to the bottom among online brokerages by eliminating commissions for ETFs along with U.S. stocks and options.

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