Asset managers foresee easing fee pressure

While asset prices have been falling, 2022 has also offered inflation at levels not seen in four decades, resulting in increased pressure on asset managers’ earnings, while fees have been lowered for years. But better return expectations might lead to a new regime.
Ralf Magnussen (left), head of Nykredit AM, Henning Mortensen, head of Jyske Capital, and Lars Bo Bertram, CEO of BankInvest. | Photo: PR / AP Pension / Jyske Capital / BankInvest
Ralf Magnussen (left), head of Nykredit AM, Henning Mortensen, head of Jyske Capital, and Lars Bo Bertram, CEO of BankInvest. | Photo: PR / AP Pension / Jyske Capital / BankInvest
BY ANNE LOUISE HOUMANN & MIRZA GAZIC

For years, there’s been a downward trend in fees and a rising awareness from customers resulting in increased pressure on earnings in the asset management business. Many managers have opted to adapt by lowering fees, launching new low-price funds and expanding their product offering with index funds and higher-margin alternatives products.

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