One of the biggest killers of good asset management companies is too much money flowing into too few products too quickly. Blockbusters can both make and break asset managers.
Warren Buffett’s response to the downgrading of the U.S. as a debtor was that the country is (was) not a triple A but a quadruple A. Now that is the mark of a confident man!
With all of the excitement and noisy positioning around Newcits, hopes for broad adoption and strong inflows are sky high. But don’t confuse motion with progress. Without an evolutionary leap beyond dependence on an outmoded asset allocation framework, this whole thing is going nowhere in a big way.