McKinsey Warns Asset Managers About the Rise of Passive

The video discusses the growth of passive investments, highlighting the challenges retail investors face in accessing private market growth opportunities. McKenzie's report shows shrinking growth rates for assets under management, with profit margins being squeezed. The discussion also covers trends in ETFs and mutual funds, noting significant inflows into ETFs. The video concludes with a debate on active versus passive investment strategies, considering market losses and investor behavior.

What are the potential growth rates for assets under management according to the report mentioned?

How has the trend of fees in the investment industry changed over the years?

What is the significance of the negative expense ratio mentioned in the text?

What arguments are presented for and against active management during market downturns?

What does the phrase 'under the mattress is going to be passive' imply in the context of investment strategies?