Deals
BlackRock’s Fink Expects Consolidation Among Asset Managers
- Predicts a ‘massive shift’ into more passive investing
- Says too many investment firms struggle to deliver alpha
Will Asset Managers Move to More Passive Investing?
This article is for subscribers only.
BlackRock Inc.’s Laurence D. Fink said he expects consolidation in the asset management industry as firms struggle to beat benchmarks and new U.S. rules favor passive strategies.
There are too many money managers having a tough time extracting alpha, Fink said Tuesday at the Deutsche Bank Global Financial Services Conference. A new Labor Department rule, which requires brokers to put clients’ interests ahead of their own when handling retirement investments, will additionally benefit passive strategies, he said.