Asset managers may need to prepare for five more years of slow deposits, according to a study cited by Bloomberg
Globally firms will likely see annual growth from new client money of 0.6 percent through at least 2017, consulting firm Casey Quirk & Associates
declared in a paper.
Many will struggle with shrinking revenue as much of the growth will go to companies specializing in niches like alternative-investment strategies, or that sell to customers in emerging economies, according to Casey.
“Market appreciation at any level won’t be enough to save asset managers focused on selling outmoded products to slower- growing investors,” Bloomberg
quotes Casey-partner Benjamin Phillips
The Casey report argued that companies that provide cheap indexing or multiasset products such as asset-allocation funds and target-date retirement funds will fare best in the slow-growth climate.
For example, low cost indexer and ETF sponsor Vanguard Group
] known for its index-based mutual funds and exchange-traded products, attracted $24.3 billion in January, a record for the Valley Forge, Pa. company.
Read more at Bloomberg
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