Which asset managers will survive the 'industrial evolution'?

Overcoming challenges in the industry

Over a third of asset managers are at risk of "melting away", with the median peer in this group only achieving an average of 7% revenue growth, cost expansion of 8% and no organic growth between 2014 and 2017, according to a new report.

In its white paper, entitled Industrial Evolution: Securing Profitable Growth in Tomorrow's Asset Management Industry, Deloitte consultancy Casey Quirk said profitable growth has become elusive as there have been no dramatic changes to revenues, costs or both at some firms, while a quarter of all firms risk becoming unprofitable by 2028. Tom Brown, global head of asset management at KPMG, said: "Ultimately, the asset management sector needs to change to survive. This is true of the whole of financial services, but it is especially acute in asset management, which is now in the spotlight ...