Inside the White House with D.C.'s most wired reporter. Sign up for Mike Allen's Axios AM.

Stories

Actively managed funds had their worst month ever

lackRock Investment management company logo seen displayed on a smart phone.
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