PGIM CEO Sees ‘Zombie Firm’ Future for Most in Asset Management

The video discusses the current state of the asset management industry, highlighting the disparity between successful and struggling firms. It explores the impact of fee pressure, performance focus, and consolidation trends. The debate on industry consolidation is examined, noting that the asset management industry is driven by fiduciary duty rather than shareholder value. The concept of 'zombie firms' is introduced, describing firms that continue to exist despite outflows and reduced margins. Fee pressure is analyzed, revealing it is more targeted than a broad trend, affecting public equities more than private equity or real estate.

What factors are contributing to the disparity between winners and losers in the asset management industry?

What percentage of firms in the asset management industry are struggling with assets, according to the text?

Discuss the reasons why consolidation in the asset management industry has not occurred as expected.

What is meant by 'zombie firms' in the context of the asset management industry?

How has the fee pressure affected different segments of the asset management industry?