Summary of The Hidden Pressures on Asset Managers

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

The Hidden Pressures on Asset Managers summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

In 2017, exceptionally strong stock market performance pushed the profits of asset managers to levels not seen since the 2008 financial crisis. However, according to professionals at the Boston Consulting Group in this astute analysis, the robust showing masked a number of challenges, including managing the costs of implementing state-of-the-art digital capabilities and moving into new markets like China. Looking out to 2022, asset managers will need to realign their approaches to growth. getAbstract recommends this incisive report to executives of asset management firms.

About the Authors

Brent Beardsley et al. are professionals with the Boston Consulting Group.

 

Summary

Asset managers enjoyed outstanding returns in 2017, thanks to vigorous equity markets. With the S&P 500 appreciating 19.5% for the year and other global markets showing significant strength, net new asset inflows of 4.3% were higher than they had been in any year since the 2008 financial crisis. In 2017, average assets under management (AuM) leapt 11% over 2016.

But in a sure sign of fee pressures, revenue increases of 9% lagged the rise in average AuM.  In a “business-as-usual scenario,” without executive action, profit margins could dip from 2017’s 38% ...


More on this topic

By the same authors

Global Asset Management 2018
8
Transforming the Client Experience
8
Hedge Funds
8
Doubling Down on Data
8
Navigating the New Client Landscape
8
Global Asset Management 2015
8

Customers who read this summary also read

The Shift from Active to Passive Investing
8
Investment
7
Wealth Management
7
One Hour Investor
7
The Global Risks Report 2018
9
How Principal Investors Can Up Their Game in Direct Private Equity
8

Related Channels

Comment on this summary