- a comparison of the global fund management industry since pre-credit crunch shows that assets under management have recovered, there are more independent fund managers, and the top 20 list of fund managers is US dominated in terms of ownership;
- banks are expected to continue to sell their fund management businesses and it is likely that large independent fund managers will continue to acquire them;
- increasing barriers to entry related to the regulatory and accountability framework, specifically in relation to the cost of implementation, have started to deter start-ups and force consolidation at the bottom end of the market;
- the focus on the transparency and governance agenda – from both regulators and investors – will inevitably exert downward pressure on fees;
- that downward pressure will apply particularly to the ETF segment, where average European fee levels are similar to those of passive funds and falling at an average rate of 1% per annum depending on the instrument;
- both investors and regulators exhibit a growing thirst for passive funds, and as a consequence these funds are growing at twice the rate of active funds, resulting in margin compression.
Regulatory Change Could Cost European Fund Managers Up To $500 Million Per Annum, According To Study By BNY Mellon And EY
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