Active managers move closer to being endangered species
The Pensions & Investments article, “Active managers move closer to being endangered species," quoted Russell Reynolds Associates Consultant Debra Brown on the lack of demand for active managers. The article is excerpted below.
The investment management industry has a history of sheltering endangered investment strategies past their prime, but time may be up for a swath of the global active management industry.
The combination of declining pools of defined benefit plan assets, the rapid rise of passively managed assets and commensurate fee pressure, higher operating costs and a forthcoming wave of money management successions is creating an environment that may prove dangerous for some traditional active managers, industry observers said.
"The biggest problem area in the industry is active management because there isn't much work there," said Debra J. Brown, managing director in the investment practice of executive recruiter Russell Reynolds Associates Inc., New York.
"There are a lot of people who won't find a home if they lose their jobs because their skill set isn't needed," Ms. Brown stressed.
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