Question Regarding the space as a whole -> Will Asset Management Grow?

Hey All,

Hope everyone is having a great day. I had a generic question regarding some of the dynamics at play within public markets. Specifically, I know (or have heard) from a plethora of PM's that the industry is rapidly consolidating due to the massive fee compression from ETF's/indexing and the lack of outperformance of major indices. Moreover, I've also heard and have done research regarding the impact of the growth of algo's as well as robo-advisory. Lastly, I've also read about the exponential growth of the private space and the decline in number of IPO's/opportunities within the public space over the past 15-20 years (granted 20 years ago was the dot-com boom).

I was just wondering what everyone's thoughts are regarding the active managed space within public markets and the growth prospects moving forward? If we are as late cycle as most PM's believe, when a recession does hit, will we see large inflows into the active space again?

 

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