Consolidate to accumulate

The predictions of consolidation within the asset management industry come and go with the economic cycles and stock market volatility.

In the aftermath of Lehman there was much discussion about whether active management, and more precisely diversification, worked to the benefit of investors. The debate about value for money this time around has been accentuated by a new lobby group the ETF industry. In the UK, ETFs only account for about 3% of overall fund sales, while in the US it is closer to 10%, but the amount of ‘noise’ by the providers is considerably louder, leading some commentators to suggest there would be greater consolidation among active managers. There have been small corporate actions which suggest ...