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Laxman Pai, Opalesque Asia:

Publicly traded traditional North American-based asset management firms continued to post declining profits and assets under management as the industry battles with a turbulent market and inflationary pressures, said a study.

The analysis of the publicly traded traditional and alternative asset managers with an aggregate of $17 trillion in assets under management by money manager consultant Casey Quirk, a Deloitte business, revealed that inflation played a big role in the declining earnings and AUM seen last quarter.

According to Casey Quirk's analysis, with the S&P at the end of Q3 down 6% versus the end of Q2 and 25% year-to-date (YTD), managers' revenue decreased 5% versus Q2 2022 and 18% YTD for the median traditional firm.

The median traditional asset manager saw assets under management (AUM) declined 6% versus the prior quarter and 20% in aggregate since year-end 2021. Casey Quirk's analysis reviewed 18 listed traditional and alternatives asset managers in North America with a combined $17 trillion in AUM as of Sept. 30, 2022.

Flows for traditional managers were down 0.5% for the quarter (versus +1.7% in 2021) but remain slightly positive overall for the year. However, flows have been insufficient to offset losses driven by declining capital markets and the majority of YTD flows have been concentrated in money markets, alternatives, and passive strategies.

Asset managers are also battling rising costs in the c......................

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