Global asset management growth stalled in worst year since crisis

Global growth up just 1% in 2015 amid turbulent market conditions and declines in net flows of assets.

The global asset management industry has suffered its worst year since the financial crash, amid a stagnant stall in growth in 2015.

A decline in net flows of assets, revenue growth and revenue margins, are thought to be behind the stall, according to a report published by the Boston Consulting Group.

The global value of assets under management rose by just 1% in 2015, totalling $71.4 trillion, compared to $70.5 trillion the year before.

“Negative and turbulent performance of global financial markets… failed to buoy the value of invested assets as in prior years,” the report explained.

Senior partner at Boston Consulting Group, Brent Beardsley, said: “Asset managers that depend on financial-market performance to drive increases in asset values are stuck in a model from the past.”

Data and analytics are thought to be key areas separating the competition, as disruptive technologies, “are on the verge of joining mainstream asset managers.”

Gary Shub, partner at Boston Consulting Group, added: “Deep expertise, grounded in advanced data and analytics, will define competitive advantage and enable some managers to prevail.”

The report estimates that keeping up with technologies entering the market will “require significant changes to almost all elements of a firm’s operating model.”