Revenues for European asset managers fell 9% year-on-year during the first half as the sector’s assets under management declined 1.5% as a result of a Covid-induced slump.
Figures from ratings agency Moody’s show that the average earnings margin (Ebitda) of European asset managers dropped 27% during the first half of 2020, reflecting lower management fees during the period while costs remained broadly unchanged.
Despite the negative numbers, Moody’s said in a statement that European assets managers had shown resilience as financial markets rebounded from a sell-off.
The figures showed that assets under management at European asset managers declined by 1.5% to €10.4 trillion in the first-half of 2020, compared with December 2019.
A slump in financial markets in the first quarter was largely reversed in the second quarter with the help of central bank intervention and government stimulus.
“The positive performance of financial markets since the first quarter of the year means management fees and margins could recover in the second half of the year,” said Marina Cremonese, a senior analyst at Moody’s.
“However, we remain cautious as market risk is still high given the slower than anticipated economic recovery from the initial coronavirus shock, as well as the strong resurgence of Covid-19 cases.”
©2020 funds europe
