Numis: Expect 'significant consolidation' in mid-sized asset managers

Industry facing headwinds

Numis is forecasting a negative outlook for asset managers which are 'stuck in the middle' in terms of size and expects to see 'significant consolidation' in the industry.

In a report entitled Asset Managers: Headwinds and consolidation, the research firm said the asset management industry is likely to see low expected future returns, weak organic growth, rising regulatory costs and low AUM growth. Numis also expects 'significant consolidation' of firms which were 'stuck in the middle' between giant players and boutiques, as only the strongest performers would be able to survive. The report said the asset management sector was "not an obviously great investment opportunity", nor was it obviously cheap. "Given the headwinds (and cost synergy potential...