For the transaction banks, controlling costs per trade and costs per asset under management will become the key to profitability.
The fees as % of asset under management fell considerably during the recent economic downturn with returns across assets classes diminishing.
FORBES: Goldman Sachs Gets To $164, No Thanks To Asset Management Biz
During our forecast period, we expect the fee as % of asset under management to increase by the end of 2011 from 2010 levels, driven by a broader recovery across asset classes after the recent economic downturn.
FORBES: Goldman Sachs Gets To $164, No Thanks To Asset Management Biz
Citigroup (nyse: C - news - people ), which epitomized the diversification trend by combining insurance underwriting, securities, retail brokerage, consumer banking and asset management under one red umbrella in 1998 moved earlier this year to shed its life and annuity business.
Traditional asset management is under siege from two directions, he says.
For the Asset Management division, the fee as percentage of assets under management decreased from 0.7% in 2005 to 0.2% in 2009, with Morgan Stanley cutting fees to hold on to clients in an increasingly competitive market.
Entering the asset-management business in Europe and the U.S. could help to expand its horizons there, and will push overall assets under management close to the total held by Nomura Asset Management, the biggest Japanese money manager, the company said.
"That suggests investors expect the new leaders will try to avoid any bond default, " says Wang Yingfeng, a bond-fund manager at Yaozhi Asset Management Co. in Shanghai, which has two billion yuan in assets under management.
Initially repossessed by the former Anglo Irish Bank, it eventually came under the control of the Irish government's National Asset Management Agency (Nama).
The unit was placed under a strategic review, as were Morgan Stanley's asset management and retail brokerage divisions.
Under the agreement Aubrey assented to, Icahn will appoint one new director and Southeastern Asset Management will appoint three new directors.
Purcell has been under pressure for months to boost the performance of Morgan Stanley's brokerage, asset management, and card services units, not to mention its lagging stock price.
The market is "paying close attention to how much a weakening yen might have helped companies like Toyota as the earnings reporting season gets under way for the just-concluded fiscal period, " said Naoki Fujiwara, fund manager at Shinkin Asset Management.
应用推荐