Fund industry profits shrink as higher costs and passives bite
Worldwide profits for traditional mutual fund groups fell by close to 3% in 2016, despite higher assets under management, according to a report by McKinsey.
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Worldwide profits for traditional mutual fund groups fell by close to 3% in 2016, despite higher assets under management, according to a report by McKinsey.
A quarter of the asset management businesses monitored by accounting giant EY have now announced plans to move operations to Europe due to Brexit.
The ‘squeeze’ on asset managers’ balance sheets is well known, while recent deals in the sector have failed to cheer shareholders, but there are nonetheless pointers to the industry’s future winners.
A group of asset managers surveyed by Expert Investor unanimously agreed that the industry will become less profitable over the next three years.
Asset managers see global economic growth accelerating this year, extending an eight-year equity bull market beyond 2017. Fund buyers, however, are a little more guarded.
Europe’s share of the world economy may be declining steadily, but there is at least one area where the continent is growing in importance: asset management revenues. Global asset management companies are deriving an ever growing share of their revenue from Europe, at the expense of the United States.
The UK risks losing its financial passporting rights if it leaves the European single market following the Brexit vote. Some asset managers are taking action to counter this threat, while others sit back and wait.
Further asset management consolidation is on the horizon but the line between predator and prey is increasingly blurred Numis said in a note on Friday.
Asset management companies are starting to struggle explaining their investment philosophy to fund selectors according to a survey by research outfit Cerulli. It asked a selection of European asset managers what they find the biggest challenges in promoting their products to fund selectors.
Multi-asset funds took in a record €22.7bn in March, the latest month we have fund flows data available for, dwarfing net inflows into all other asset classes. Multi-asset funds are starting to fulfil a similarly dominant role in asset management as the Champions League does in football, according to Thomas Romig, head of multi-asset portfolio…
Asset managers are having a hard time convincing decision-makers at pension schemes to place their mutual funds on their buying lists.
Global asset management companies have never before been as divided on return prospects in emerging markets as they are now.