Asset management sector volumes flat – CBI/PwC
According to the latest CBI/PwC Financial Services Survey business volumes in the asset management sector were broadly flat – the first time that they have not grown since June 2012.
According to the survey, despite pricing power squeezed, incomes stalled and profits fell, investment managers expected volumes, incomes and profits to recover in the next quarter.
Meanwhile, the sector’s headcount continued to increase strongly.
Paula Smith, PwC’s UK asset management leader said: “Buoyed by hopes in European equity markets and the positive tone of UK economic recovery, investment managers remain optimistic about their outlook.
“Headcount is climbing as firms gear up for renewed growth. However, the costs of regulation and tougher competition are two clouds on the horizon.”
Smith also said that investment managers see product development as an increasing priority, which reflects changes to regulation including the Retail Distribution Review, the birth of the FCA and a variety of European initiatives.
“However, it is also driven by the rapidly changing economic and investment outlook,” she concluded.