Can M&A solve the Active Management Conundrum?

The Asset Managers world-wide are on defensive given to ultra low rates in bonds. The banks are failing to thrive and the investors are earning almost nothing to hold bonds. An equity research report called “Switching to an Inorganic Diet”, Goldman Sachs & Co. said that they expect near zero rates to cut into European Asset Management industry’s growth, stymie product development, make managers even more sensitive to competition from low-cost index funds and put pressure on prices. The resultant, they expect a busy season of mergers & acquisitions coming up ahead as asset managers seek partners for a way out of the morass.

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