New York (HedgeCo.Net) 62 fund managers, including 12 hedge fund leaders with approximately $14.3 trillion in assets under management took part in a study by Casey, Quirk & Associates LLC, a consultant to the global asset management industry.
Alternatives managers, for the fifth consecutive year, garnered more net new flows than their traditional counterparts, according to the Casey Quirk analysis.
“Business complexity is at an all-time high,” the research company said. “Managers are being challenged by both buyers and shareholders in a lower growth environment. Buyers want highly tailored outcome-oriented solutions while shareholders want to see significant cash flow generation through more scalable offerings. Product development and delivering a distinctive client experience will be critical for success.”
Publicly traded fund management firms worldwide delivered median revenue growth of 13% in 2014 and the highest median profit margin level in five years, 33%.
“While the median revenue growth rate achieved by the quoted managers globally in 2014 was exceeded only in 2013 and 2010 in the past five years, UK-based managers trailed their counterparts in the U.S., Canada and Australia in revenue expansion last year. The UK-based firms produced a median 3% revenue growth in 2014 – while 40% suffered declines in revenue,” according to the Casey Quirk analysis. “By contrast, peers based in the U.S., Canada, and Australia had double-digit median revenue growth rates in 2014 and the percentage of listed firms with negative revenue growth was smaller.
While 76% of all listed firms in the Casey Quirk analysis enjoyed net new flows last year, a smaller group of 11 firms were the clear winners in gathering the net new flows, a key contributor to revenue growth. Almost one-quarter of the quoted managers – 24% – suffered net outflows in 2014, according to Casey Quirk.
Alex Akesson
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alex@hedgeco.net
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