1、Cost and Growth in Asset ManagementBenchmarking analysis and implications for asset managersDecember 2022Strategy&Executive summaryIn our sample of 461)asset managers,AuM grew by 20%from 2019 to 2021,while profits increased by a staggering 22%.Smaller asset managers with active business models and i

2、nvested largely in equities remained among the most profitable,despite significantly higher costs per AuM.But larger asset managers with AuM of more than USD 1tn were also able to achieve a comparably high level of profitability with active AM business models.Overall,the average CIR improved signifi

3、cantly from 65%to 61%despite a further increase in OpEx per AuM(26.4 to 27.5 bps per AuM).The latter was more than made up for by strong revenue growth.However,a select review of the half-year numbers of 10 asset managers reveals that the phenomenal growth of AuM,revenue and profitability in 2021 ha

4、s been reversed,reflecting the drop in stock market valuations:AuM growth has gone from 16%to-9%;OpEx per AuM has increased by 22%;and profitability has fallen by 6%.Given continued global uncertainty and talk of recession,we recommend focusing on“good”costs,i.e.,supporting differentiating capabilit

5、ies,while cutting“bad”costs,i.e.,supporting non-essential capabilities.1)46 Asset Managers in sample with AuM reported at least for 2012,2019-2021December 20222Strategy&State StreetBlackRockSociete GeneraleFidelity136(62%)1.422(173%)Natixis AMCapital GroupVanguardMEAGDekaBankAllianzJ.P.Morgan AM1.91

6、6(163%)NuveenBNY Mellon1.490(241%)SchrodersAmundiDWSPrudential FinancialT.RoweGoldman Sachs AMInvescoNorthern Trust1.069(122%)2.296(164%)Wellington ManagementUBS AM732(180%)AxaBNP3.973(211%)Credit Suisse AM462(81%)UnionInvestmentAviva InvestorsGAMSwiss Life AMVontobelTalanx GroupPartnersGroup8.838(2