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