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So perhaps rivals are not bluffing when they say that they will not follow suit.In this section A nasty whiff of inflation Semper Fi Ménage à trois Baltic blues Real step forward Breaking the bank Cold shower Taxing times Unlikely revolutionaries ReprintsThese numbers may seem too small to worry about, given the 1.5% in management charges that actively managed equity funds typically collect.
Management fees for actively managed equity mutual funds run around 1.5% on average on a straight-line basis, not the lower asset-weighted one the industry likes to tout.
Last year, the average equity index fund had assets of $1.6 billion under management, compared with $374 million for actively managed equity funds, according to the institute's data.
In an actively managed equity fund you pay handsomely for a manager's ability to pick stock winners.
Chris Leavy, chief investment officer of United States managed equity portfolios for BlackRock Inc., the world's largest investment management firm, pointed to long life expectancies as a reason that stocks are "a compelling investment compared to fixed income".
"The simple arithmetic is low-turnover, actively managed equity and municipal bonds provide the best after-tax return," Mr Gannon said.
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"Korean companies have been dominating the market, and it is really difficult for Taiwanese companies to compete in the longer term," said John Chiu, who manages equity assets for the Fuh Hwa Securities Investment Trust in Taiwan.
Rogers also manages Equity Income, the biggest of the firm's 91 funds, with $17.4 billion in assets.
Forbes: Do you think these institutions will then do things like manage equity funds instead of having pieces of them?
Startup eShares is also seeking to provide a platform for managing equity and cap tables.
No one was doing a good job helping private companies manage equity, valuations and transactions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com