Even with markets in ascent, asset managers’ revenues have flatlined. But the evolution of balance sheets among banks, insurers, and high-net-worth individuals could unlock the next wave of growth.

DOWNLOADS

Article (21 pages)
The North American asset management industry faces a conundrum. The 2023 recovery appears to be accelerating in 2024, but the industry has struggled to regain its financial footing. Revenues have stagnated amid outflows from higher-fee active equity mutual funds and a period of adjustment in the private markets. And profitability has remained under pressure amid rising costs.

The good news: lifted by strong market performance and healthier net flows, the industry’s global assets under management (AUM) reached a record $132 trillion as of June 2024. The bad news: 2023 revenues were essentially flat compared with the previous year and profits shrank 5 percent.