04/10/2016
Asset managers face eroding margins
p { margin-bottom: 0.25cm; line-height: 120%; } Asset managers in Europe are being forced to rethink their business models in the face of shrinking profit margins and client demands for a broader array of investment solutions, according to the latest issue of The Cerulli Edge - Global Edition. While the net revenues of European asset managers rose, on average, by a compound annual growth rate of 14.8% between 2012 and this year, the increase has not translated into higher profit margins in all cases, according to estimates by Cerulli. «In response, some asset managers are looking for new strategies in order to diversify their portfolio of funds and offer a wider suite of products. Others are seeking new capabilities, such as discretionary portfolio services in segregated accounts and financial planning services, in an effort to gain more control of the end client,» says Barbara Wall, Europe managing director at Cerulli. Managers are having to increase their capabilities in under-represented asset classes, increasing the focus on alternatives, for example.
