Big asset managers struggle in Europe

The big mutual fund companies have fared very well domestically since the recent fund scandals rocked the industry. There seemed to be a flight to quality names that were unscathed, which really helped the likes of Vanguard. In Europe, however, Fidelity, Wellington Management Company, Capital Group  and some other big names (some put Vanguard on that list) seem to be struggling. The biggest issue seems to be performance, which has made consultants and others wary of recommending the firms' funds. Some have sniped that while these funds criticize companies for governance practices, their own practices seem to be outdated. They are all privately owned. Boutique-y type firms have been perceived as more nimble. But some seemed poised to put the bad luck behind them. Capital Group has expanded and seems ready to make a move.

For more:
- here's the article from Financial News Online