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automatisch generiertes Audio
automatisch generiertes Audio

Editorial 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.

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% to...

About the Authors

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