MutualFundWire.com: How Big, and How Profitable, Is Asset Management Worldwide?
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Wednesday, July 08, 2015

How Big, and How Profitable, Is Asset Management Worldwide?


Worldwide, asset management firms are generating about 14 basis points of profits. And that number is on the rise.

Yesterday Boston Consulting Group released its 13th annual study of asset managers, highlighting two numbers above all else. In 2014, total asset manager AUM rose to $74 trillion, and total profits of $102 billion.

The Financial Times highlighted BCG's report.

Those two big numbers translate into 13.8 bps of asset management industry profit for each customer dollar managed, up from 13.5 bps ($68.7 trillion in AUM and $93 billion in profit) in 2013 and 12.8 bps ($62.4 trillion in AUM and $80 billion in profit) in 2012. So AUM is up, and asset managers are also squeezing a little bit more profit out of each dollar of AUM.

Yet profitability in bps is still way down its pre-financial crisis levels. The $102 billion in profits asset managers brought in last year matches the $102 billion they earned in 2007. In 2007 industry AUM was only $55 trillion, so profits were 18.5 bps.

For fundsters who want to dig deeper into the state of the industry, the BCG report offers a host of other details about flows, costs, and other asset management industry trends and issues.


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