Asset manager profits suffer first fall since June 2009

Falling business volumes and income meant asset managers saw profits drop for the first time since the second quarter of 2009 in the final three months of last year.

Optimism in the investment management industry dropped in the fourth quarter of 2011 as business volumes fell for the first time since March 2009, according to the Confederation of British Industry (CBI). The quarterly financial services survey from the CBI and PwC said investment management firms saw not just a drop in volume of business but also an unexpected fall in the value of income from fees, commissions, trading and investments. Profits fell for the first time since June 2009, and are expected to drop again - albeit at a slower rate - in the first quarter of 2012. But hiring i...