5 min read
Asset Management Trends: 7 Key Ways the Industry is Evolving in 2024
Prepare your firm for the future by adopting a proactive strategy.
1. Fees Are Getting Squeezed
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/blt7b73009eb00447c4/66671eac3c0f7e6965a442ad/Fees_Are_Getting_Squeezed.png?format=webp&auto=webp&disable=upscale&width=null)
This consolidation is creating benefits of scale for those that have scale and diseconomies of scale for those that don’t.
2. Mutual Funds Are Losing Market Share
Index funds and ETFs continue to attract inflows
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/blt7357fd035b712244/66671eac194658e7b44c8308/Index_Funds_are_Seeing_Inflows.png?format=webp&auto=webp&disable=upscale&width=null)
Index mutual funds and ETFs are continuing to attract inflows.
ETFs are the preferred wrapper
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/bltddff32cf8b03f6ff/66671eac134a34835b67b017/ETFs_Are_Preferred_Wrapper.png?format=webp&auto=webp&disable=upscale&width=null)
Since the dawn of the US ETF era in 1993, ETFs have readily raked in new money as mutual funds turn over.
CITs are significantly growing in appeal
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/bltf474f3d3e85b072c/66671eada05faeb9b5c2f1c2/Total_Target-Date_Assets.png?format=webp&auto=webp&disable=upscale&width=null)
Target-date CITs’ assets almost caught target-date mutual funds’ in 2023.
3. Active Management is Evolving
Active ETF market share is gaining ground
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/blt4526bc58e75c9213/66671eacbd762a435c5937b1/Active_ETF_Market_Share.png?format=webp&auto=webp&disable=upscale&width=null)
Active ETFs are here and they’re making inroads.
Strategic beta ETFs are increasing in popularity
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/bltd3aa7c48551eb84b/66671eac67d4ad0bb058d4cf/Strategic_Beta_ETFs.png?format=webp&auto=webp&disable=upscale&width=null)
Strategic beta ETFs continue to grow, attempting to deliver the active approach to portfolio construction in a way that scales.
4. Risk-Free Return Has Returned
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/blt3e2380dbd8dcedbb/66671eac3c0f7e587aa442b1/Risk-Free_Return_Has_Returned.png?format=webp&auto=webp&disable=upscale&width=null)
Risk-free return has returned. We've seen spikes and investors have taken notice.
5. Thematic Funds Are Hot, Until They’re Not
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/bltad07c7bb3663987b/66671eac6abc751a8c233d7c/Thematic_Funds_Are_Hot.png?format=webp&auto=webp&disable=upscale&width=null)
While interest in thematic funds has significantly grown in recent years, not all these investments have seen outstanding returns.
6. Demand is Fizzling for Sustainable Funds
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/blt2886ce593e53e62f/66671eacfe52323fcb288042/Demand_For_Sustainable_Funds_Has_Fizzled.png?format=webp&auto=webp&disable=upscale&width=null)
Investor appetite for sustainable funds has waned despite recovering performance.
7. There’s a Growing Bull Market in Options-Based Strategies
![](/content/cs-images/v3/assets/blt9415ea4cc4157833/bltdd6114acc8c328fe/66671eac76fac43d2fc0f628/Growing_Bull_Market.png?format=webp&auto=webp&disable=upscale&width=null)
Flows for options-based strategies rose significantly over the course of 2023.