Seven of the world's largest fund managers collectively lost more than half a trillion dollars in assets during the third quarter as they struggled to cope with the fallout from Black Monday. The slump has sparked fears investors will pull more money during the final months of the year.
The fall heaps more pain on asset managers whose balance sheets are already under strain because of a price war around product fees and growing regulatory costs.
Amin Rajan, chief executive of Create Research, a consultancy, said some investors panicked during the third quarter and took flight. "Others remain, but are completely unsure which way to jump."
He warned that investors are likely to switch asset classes during the final months of the year. "We are going to see a lot of rebalancing. If [investors] do not see a lot of returns in asset class X, they will switch to asset Y."
Source: CNBC
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