BlackRock is culling a number of active equity fund managers in a move to switch their funds to quantitative strategies.
The firm says it is making wholesale changes to the actively managed equities funds that have fallen out of favour as a result of the investor shift towards lower cost passive funds, the FT reports.
The funds affected have assets totalling $8bn, with about $6bn moving to quantitative investment strategies and $2bn relaunched as fixed income funds.
Seven portfolio managers in the US are said to be among the 40 employees who are being made redundant following a six-month review, including Murali Balaraman and John Coyle, managers of the BlackRock Global Small Cap fund.
Last year the world’s largest asset manager saw $20bn in outflows from its actively-managed equities business.