Money Managers Bleed Cash After Investors Pull Billions
- Popularity of indexing creates more losers than winners
- Sovereign wealth withdrawals contribute to manager woes
An employee grabs sheets of five dollar to be loaded into a machine at the Bureau of Engraving and Printing in Washington.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Money managers are having trouble hanging on to money.
Franklin Resources Inc. said Wednesday that investors withdrew $20.6 billion in the fourth quarter, the latest asset manager to highlight the issue of redemptions. Affiliated Mangers Group Inc. said on Tuesday that it had outflows of $6.8 billion, while Waddell & Reed saw $5 billion in withdrawals, contributing to the biggest drop in its stock since the financial crisis of 2008.