Volatile markets last year translated into a rough time for fundsters, according to the latest data from a key consulting ally to the industry.

Amanda Walters Deloitte Consulting Principal, Casey Quirk Practice

Publicly traded, traditional asset managers saw their profits drop six percent in 2022, Deloitte's Casey Quirk team revealed last week. (That's down from a 33-percent increase in 2021.) Yet such firms still increased their headcounts by one percent last year.

Traditional asset managers also saw revenues fall four percent last year as AUM fell 16 percent. (That compares with jumps of 20 percent and 14 percent in 2021.) Amanda Walters, principal at Casey Quirk, notes that the bifurcation between such firms and alternative asset managers grew last year, with alts shops recording big gains in AUM, revenue, and profits in 2022.

The Casey Quirk folks also offer a hint as to what all this means for 2023.

"The uncertainty and volatility of markets in 2022 seems to have carried into 2023 so far," states Scott Gockowski, senior manager. "Given the dependence of the industry's economics on markets, we expect 2023 will continue to be a period where asset managers will need to carefully consider their investments in talent and technology." 

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