The majority of US equity asset managers are unprepared for the trend towards passive trading, according to a study by TABB Group . It revealed that almost $3tn had switched from active to passive funds in the past decade , but 35% of managers surveyed hoped the trend would change, while more than 75% were trying to reduce their costs. The study also found 66% of respondents would be affected by Mifid II unbundling regulations, up from 11% in 2016 . “Larger funds are more impacted and more prepared than smaller funds. "Many smaller funds have not even started analysing the impact of unbundling on their business," said TABB Group analyst Mifid II .
The majority of US equity asset managers are unprepared for the trend towards passive trading, according to a study by TABB Group . It revealed that almost $3tn had switched from active to passive funds in the past decade , but 35% of managers surveyed hoped the trend would change, while more than 75% were trying to reduce their costs. The study also found 66% of respondents would be affected by Mifid II unbundling regulations, up from 11% in 2016 . "Many smaller funds have not even started analysing the impact of unbundling on their business," said TABB Group analyst Mifid II .