Almost half of asset managers suffered outflows in 2015

Just over 44% of asset managers worldwide reported net outflows last year, while positive net flows into passive strategies globally doubled to reach 72%, new research indicates. The Performance Intelligence Asset Management Benchmarking Survey, published by benchmarking firm McLagan, surveyed members of the US and European Asset Management Institutes, and the executive teams of 100 leading asset management firms. The survey found that despite the rise of passive vehicles and rising outflows, and aggregate fees declining to an average 50.1 basis points from 51.4 in 2014, industry revenue was barely dented, falling to around $344 billion (€307.3 billion) from $346 billion. Operating margins also fell slightly, to an estimated 32%, from 34%. Nonetheless, global assets under management rose to an estimated $69 trillion in 2015, from $68 trillion in 2014. Jeffrey Levi, senior manager at Deloitte, said the findings were a stark reminder that traditional active managers must adapt their “outdated” business models. "Fees are under increasing scrutiny, and regulatory pressures are on the rise. This shifting marketplace will in turn drive greater convergence in the industry across wealth management, asset management, insurance and financial technology,” he said. Fred Bleakley, director of the US Asset Management Institute, said the industry was now undergoing an era of disruption and consolidation similar to what Wall Street firms underwent in the 1980s. "Surviving asset management firms will be leaders in specialty active management, smart beta passive, and multi-asset class solutions,” he said. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.

Roundtables

MARKETING & BRANDING ROUNDTABLE: It’s about aspiration

May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.