Asset Management – Pursuing profitability with caution
The 2008 financial crisis caused a severe drop in asset valuations and a sharp decline in revenue. The subsequent and intense pressure on fees has, at times, called into question the profitability of the prevailing industry model.
Earlier in the year, there was evidence to suggest that the overall economic picture was improving and so the industry was growing increasingly optimistic of a potential return to a pre-crisis environment. These positive trends have, however, proven to be both temporary and weak. The debt crisis, slow economic growth, foreign exchange imbalances, continued high unemployment in the US and a number of catastrophic natural disasters (including the earthquake in Japan) have all dampened hopes of a strong recovery.