Active management fees already declined 4 percent in 2021, according to Investment Metrics. If active managers fail to deliver satisfying net-of-fee returns in the current economic environment, their market shares will be taken away by the rising stars in the asset management industry: exchange-traded funds and alternative products. Fixed-income and equity ETFs are expected to lead AUM growth in the next five years, according to BCG. By 2021, the AUM in passive funds had grown at more than four times the rate of active products since 2008. “It’s a long-term trend,” Pardasani said. “New clients and advisors are doing more and more passive, so that train isn’t going to stop.”