Asset Managers Are in BIG Trouble. Here's Why.

28/10/2024 15 min

Listen "Asset Managers Are in BIG Trouble. Here's Why."

Episode Synopsis


Dividend Aristocrats T. Rowe Price and Franklin Templeton are both languishing while BlackRock soars. Why such a discrepancy between these different asset management firms? Well, it comes down to fees. Morningstar found that fund fees were the strongest indicator of performance, with low-cost fees outperforming higher-cost alternatives. This has led to a significant rotation out of active funds and into cheaper, passive ones. As the world's largest asset manager, BlackRock stands to benefit with multiple popular passive ETFs. It's going to be difficult for T. Rowe and Franklin to compete with established players like BlackRock, Vanguard, Schwab, and Fidelity.




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