Markets

Asset managers rely on autopilots for financial markets


With or without a mask: the investment decisions of individuals are often based on emotions, but these do not always guide the stock market properly.
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Active funds have to fight. Passive ETF products are putting pressure on the fees. In addition to consolidation, new investment strategies should offer a way out.

E.s is a message that clarifies the pressure on the fund companies. On Monday, the “Inside Paradeplatz” news portal, which is well-connected in the Zurich financial center, reported that the major bank Credit Suisse was considering splitting off its fund investments business for ordinary investors (asset management) from wealth management for wealthy clients. The aim is to merge asset management with other fund companies or to open it up for strategic alliances.

Consolidation in the industry has been going on for a long time: Examples of mergers are the takeover of the Unicredit subsidiary Pioneer by the French asset manager Amundi or the merger of the Scottish companies Standard Life Asset Management and Aberdeen. The competition from passive index funds, the Exchange Traded Funds (ETF), is increasing. They map stock indices such as the Dax and only charge a fraction of the fees that funds actively managed by a fund manager charge.

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