Gwynne pointed out that the pressure on fees was in part due to clients and supervisors becoming increasingly cost-aware, “as costs have become an important selection criterion”.In his opinion, another explanation for declining costs was that many clients had opted for low-cost alternatives, such as ETFs and factor investment. He estimated that 40% of the reduction could be explained by this phenomenon.The survey suggested that asset managers dealt with the development by accepting a drop in their profits margin, but also cut costs through their back office. This meant that cost-saving came at the expense of investment in IT systems, which the survey said were necessary to remain competitive. In addition, declining income could lead to mergers and takeovers, the two companies said.The researchers said they expected clients would increasingly opt for extremely low-cost investments in combination with higher-cost active investments.“Through investing a large proportion of assets in ETFs with near-zero costs, they could free up assets for active funds which considerably deviate from the benchmark, or funds that invest in illiquid markets,” the report said.Recently, Saker Nusseibeh, chief executive of Hermes Investment Management, also predicted declining margins at asset managers.During a Morningstar conference, he said that asset managers’ margins of between 35% and 45% were “untenably high”. Asset management costs are to drop by approximately 10% in the next three years, a survey by management consultancy Oliver Wyman and asset manager Morgan Stanley has suggested.In their report, The World Upside Down, the two firms attributed the decline to reduced fees as well as a shift towards exchange-traded funds (ETFs) and factor investment.“The decrease of fees is a trend – last year they dropped 6%,” said Serge Gwynne, partner at Oliver Wyman’s corporate and institutional banking practice.He added that the fall was insufficiently compensated by a rise in assets under management, which had lead to an income drop of roughly 5% at asset managers.
After winning title, time for LA Tenorio to give back to Batangas folk Gretchen Barretto’s daughter Dominique graduates magna cum laude from California college Ginebra beats Meralco again to capture PBA Governors’ Cup title Warriors’ Andre Iguodala fined $25K for throwing ball into stands Sports Related Videospowered by AdSparcRead Next Indiana big man Myles Turner broke his nose in a collision with John Collins Monday in the Pacers’ 116-108 NBA victory over the Atlanta Hawks.Turner contributed 20 points before departing in the fourth quarter, with the Pacers announcing the diagnosis shortly thereafter.ADVERTISEMENT The four-year NBA veteran, who is averaging 12.9 points, 7.2 rebounds and a career-high 2.8 blocks in 35 games this season, also had eight rebounds and four blocks for the Pacers, who head into 2019 on a five-game winning streak.Pacers star Victor Oladipo, who suffered a facial fracture in a pre-season practice in 2014, said he’d give Turner some tips if his teammate has to wear a protective mask when he returns to court.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSJapeth Aguilar wins 1st PBA Finals MVP award for GinebraSPORTSGolden State Warriors sign Lee to multiyear contract, bring back Chriss“I’ve worn a mask before, I’ll give him some pointers,” Oladipo aid. “The mask has secret powers so he’ll be all right.”Oladipo led the Pacers with 22 points, seven assists and five steals. Japeth Aguilar embraces role, gets rewarded with Finals MVP plum No.13 lucky for Orlando Bloom Nadine Lustre’s phone stolen in Brazil ‘Mia’: Rom-com with a cause a career-boosting showcase for Coleen Garcia LATEST STORIES Phivolcs: Slim probability of Taal Volcano caldera eruption After a strong third quarter Indiana built their lead to 17 points early in the fourth before the Hawks trimmed the deficit to six with less than two minutes to play.“They’re a really good team, especially offensively,” Oladipo said. “We did a great job of digging down and getting stops when we needed it.”The Pacers, who improved to 25-12, are third in the Eastern Conference but Oladipo said they have their sights on doing more.“We’re doing pretty good, but we can be better, man, that’s what’s scary about it,” he said. “We’ve got a lot of room to improve. We have bigger goals.”ADVERTISEMENT Don’t miss out on the latest news and information. MOST READ Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Carpio hits red carpet treatment for China Coast Guard PLAY LIST 02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award View comments