Times are uncertain in the asset management industry. While the broader market has enjoyed a long bull run, asset managers are moving cautiously into the next decade. Global assets dropped 4% to $74 trillion in 2018, according to a study by Boston Consulting Group, while net inflows came in at $944 billion, well below the $2.15 trillion of 2017. Actively managed assets accounted for most of the declines last year as investors continued a gradual move toward lower-fee indexing and alternatives.
But on a more upbeat note, the BCG report discussed the power of technology to help firms revamp their business models, improve their efficiency, and serve clients better. This is right in Eaton Vance's (NYSE: EV) wheelhouse. The Boston-based asset management firm is investing in new technologies and restructuring to build on its competitive advantages in direct indexing, a trend that's gaining ground in the world of asset management.
Eaton Vance is a Boston-based money management firm with five investment affiliates under its umbrella: Eaton Vance Management, Parametric Portfolio Associates, Atlanta Capital, Hexavest, and Calvert Research and Management. For the most part, each specializes in a different part of the market. The company has about $173 billion in mutual fund assets, $170 billion in institutional separate accounts, and around $146 billion in individual separate accounts.