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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (57913)	9/1/2016 9:02:51 PM
From: Spekulatius	Respond to of 78958

Re asset managers - I was a bit torn on TROW - it is a very well managed company and their funds are performing well. I see a continued shift towards index like products with sponsored retirement accounts like 401k's. And it is easy to see why - for a sponsor, they are low risk, the costs are low and th performance tends to be in the 80%tile over time. You can't get sued for following this trend from a sponsor perspective. Even if TROW keeps these 401k, they need to offer index funds and those have much lower fees - 0.25% or less rather than 0.75-1% for their active accounts, which makes them inherently less profitable. I see TROW's growth slowed down at the very least.p, other with Craig performing funds like BEN or MN might get in serious trouble and having to shrink or becoming a melting ice cube. I am staying out of this business for now, until and can see where this trend is going (and how fast).