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Laxman Pai, Opalesque Asia: Asset manager financials remain fragile despite the second-quarter market rebound, according to a study.
According to asset management strategy consultant Casey Quirk, capital markets are mostly returning to pre-pandemic crisis levels, yet asset manager financials are still feeling the impact from the brief and severe slump earlier in 2020.
The Deloitte-owned asset management consultant reported that median revenue fell 6.4 percent in the second quarter among listed traditional asset management firms.
Fee discounting, an ongoing trend, contributed to a 2.2% decline in average realized fees, and operating expense was 2.4% lower versus the first quarter of 2020. While AUM at these firms climbed 12% from March 31 to June 30, average AUM fell 6.2% and median net flows declined 0.3%.
Compared with this time last year, the median revenue slid 7.1 percent. On a year-over-year basis, average realized fees were 3.7% lower; and operating expenses also declined 3.7%. Average AUM and AUM at the end of June were 5.4% and 4.4% lower, respectively, and median net flows fell 0.6% compared with the second quarter of 2019.
Median operating margins continued a mostly downward trend for traditional publicly traded asset managers. Median operating margins were 27% in the second quarter of 2020 versus 29% for all of 2019.
"Large, diversified publicly traded managers are faring best, while firms primarily dependent on specific asset classes and c...................... To view our full article Click here
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