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Mark Gilbert

Fund Management's Future? Milking Cows

The industry faces a bleak future, with mid-sized firms being hollowed out.
Photographer: James MacDonald

To see the future of fund management, look at the the auto industry.

Large-scale producers (the equivalent of Ford Motor Co. or Volkswagen AG) will dominate the landscape, driving inefficient players out of business or absorbing them. Niche players (Ferrari NV, arguably Tesla Inc.) will charge more for specialist products, sometimes in alliance with the bigger players. Those in the middle face extinction.