Global asset management revenue hits 32 percent
Median pre-tax operating margins rose to 32 percent, the highest since 2007, according to a new survey of 101 money managers worldwide who invest an aggregate $23 trillion for institutions and individuals. The new high in profit margin was driven by market appreciation, which also lifted 2012 revenue in the global asset management industry past the previous 2007 peak.
However, lower net inflows, increasing fee pressure and a widening economic divergence among investment firms in the post–financial crisis environment indicate that the industry’s challenges are growing. For example, net inflows were 1.2 percent in 2012, compared with 3.7 percent in 2007.
The 10th annual study was produced by Casey, Quirk & Associates, a consultant to the global asset management industry, in partnership with McLagan, a compensation consulting