The money managers break away the profits

Frankfurt The good times for asset managers are over: last year, the industry’s managed capital fell by five percent worldwide, and profits even dropped by 27 percent – largely driven by the fall in value of stocks and bonds. “This is the beginning of a trend reversal,” warns Johannes Burkhardt, partner at the management consultancy BCG in Munich.

The BCG consultants predict a completely changed environment for the industry, which has long been spoiled by success. For nearly two decades, the boom in securities markets would have boosted capital and asset managers’ profits. “90 percent of the growth in income for administrators over the past two decades was due to the stock market boom – these good times are now over,” analyzes Burkhardt.