26 Nov 2018 Race to cut costs poised to disrupt index industry

As asset managers try self-indexing, what’s to stop indices groups launching funds?

The index industry is in the pink.  The rise and rise of passive investing, and particularly of exchange traded funds, has delivered double-digit revenue growth — and the forecast is for more of the same.

The industry’s global revenue climbed by a fifth to $2.7bn in 2017, according to Burton-Taylor International Consulting, part of the TP ICAP group.  Profit margins are also robust, exceeding 65 per cent for the top participants, company filings show.

The economies of scale in the index business are clearly attractive

Read the full story here:  https://www.ft.com/content/c7e65248-e0ea-3247-aabb-be9054cf97c0