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BlackRock Investment management company logo. Photo: Igor Golovniov/SOPA Images/LightRocket via Getty Images

If the deluge of forced exits at BlackRock and State Street didn't paint a clear enough picture of what's happening in the world of asset management, December's Morningstar data certainly did.

The big picture: This is the continuation of a long-running theme on Wall Street. Institutional investors, retail investors, high net-worth individuals and even some endowments and pension funds are consistently moving away from asset managers and into low-fee passive strategies.

  • Actively managed funds saw nearly $143 billion of outflows in December, their worst month on record.
  • Total outflows for 2018 climbed to $301 billion, just below of 2016's record $320 billion of outflows.
  • Investors generally blamed volatility and the down market, but passive funds pulled in almost $60 billion in December, Morningstar's data shows.
  • Overall, long-term U.S. funds had their greatest monthly outflows in December since October 2008, with $83 billion of cashflow moving out of the investments.

Go deeper: BlackRock to cut 500 jobs as industry faces growing pressure

Go deeper

Dion Rabouin, author of Markets
27 mins ago - Economy & Business

The fragile recovery

Data: Department of Labor; Chart: Axios Visuals

The number of people receiving unemployment benefits is falling but remains remarkably high three weeks before pandemic assistance programs are set to expire. More than 1 million people a week are still filing for initial jobless claims, including nearly 300,000 applying for pandemic assistance.

By the numbers: As of Nov. 14, 20.2 million Americans were receiving unemployment benefits of some kind, including more than 13.4 million on the Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) programs that were created as part of the CARES Act and end on Dec. 26.

Ben Geman, author of Generate
47 mins ago - Politics & Policy

The top candidates Biden is considering for key energy and climate roles

Photo: Alex Wong/Getty Images

Senate Minority Leader Chuck Schumer (D-N.Y.) has urged President-elect Joe Biden to nominate Mary Nichols, chair of California's air pollution regulator, to lead the Environmental Protection Agency, Bloomberg reports.

Why it matters: The reported push by Schumer could boost Nichol's chances of leading an agency that will play a pivotal role in Biden's vow to enact aggressive new climate policies — especially because the plan is likely to rest heavily on executive actions.

U.S. economy adds 245,000 jobs in November as recovery slows

Data: BLS; Chart: Axios Visuals

The U.S. economy added 245,000 jobs in November, while the unemployment rate fell to 6.7% from 6.9%, the government said on Friday.

Why it matters: The labor market continues to recover even as coronavirus cases surge— though it's still millions of jobs short of the pre-pandemic level. The problem is that the rate of recovery is slowing significantly.