Increasing M&A, ESG and fund closures: Moody's key changes to asset management in 2019

Regulatory and fee pressures

Moody's Investors Service has predicted a number of developments will take place across the asset management industry including further M&A, increasing ESG adoption and the closure of mutual funds.

The group, in its asset management outlook for 2019, gave the industry a "stable" rating due to the view fund houses can utilise technology to improve client experience, adapt their cost structures and use M&A to increase scale and diversification. Moody's also forecasted asset managers' revenue growth would continue into 2019, but this would be moderate due to rising volatility causing reposition and outflows from funds, and further compression of fees. Asset managers need to be 'ahead of the curve' amid transformational digital environment "Tightening financial conditions will el...