Asset managers feeling confident, says PwC
30 March 2015 London
Image: Shutterstock
The asset management sector is on its way back up according to the latest Confederation of British Industry and PricewaterhouseCoopers (PwC) Financial Services Survey.
After seeing a dip at the end of 2014, the industry is returning to optimism with business volumes reaching higher figures than predicted and participants expecting solid growth in the next few months.
While income from fees and commissions has risen, it is only expected to rise slightly in the coming months, due to increased scrutiny of fees.
There was also a fall in total operating costs, and growth in profitability stayed positive, even though the pace of growth slowed.
Mark Pugh, asset management leader at PwC in the UK, said: “While our survey shows that optimism has returned for asset managers, they are keeping a careful watch on the impact of developing trends in the industry. The challenge over the next year will be encouraging growth while carefully managing margins.”
“The key trends that will impact margins include responding to the competitive pressure to develop direct customer channels, including a move towards the digitisation of fund distribution, the continuing focus on transparency and regulation and the growth of passive products.”
After seeing a dip at the end of 2014, the industry is returning to optimism with business volumes reaching higher figures than predicted and participants expecting solid growth in the next few months.
While income from fees and commissions has risen, it is only expected to rise slightly in the coming months, due to increased scrutiny of fees.
There was also a fall in total operating costs, and growth in profitability stayed positive, even though the pace of growth slowed.
Mark Pugh, asset management leader at PwC in the UK, said: “While our survey shows that optimism has returned for asset managers, they are keeping a careful watch on the impact of developing trends in the industry. The challenge over the next year will be encouraging growth while carefully managing margins.”
“The key trends that will impact margins include responding to the competitive pressure to develop direct customer channels, including a move towards the digitisation of fund distribution, the continuing focus on transparency and regulation and the growth of passive products.”
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