The most successful Australian asset managers are those who manage their cost-to-income ratios at 55 per cent or less, according to a survey by consultants Investit.
Australian asset managers are among some of the best run fund-management businesses in the world and for a short-time may enjoy not having to take into account new regulations that their US and European counterparts are being forced to confront, reports Investit.
“Firms in Australia probably need to look at how new regulations and market conditions have affected their cousins in Europe and the US,” says Doug Neill, an Investit principal.
Investit’s survey of global asset managers included small firms that typically invest in one asset class. Asset managers with large amounts of assets under management but with low-margin products, as well as fund managers with many different businesses were also surveyed.
The 63-page survey, Building Your Business Efficiently, will not be made public.
Neill says the survey concluded that all asset-management models can work well and that size does not matter.
“Culturally, high performance firms do feel different,” says Neill. “There is no procrastination. They have a clear focus and rigorous business management.”
He warns that asset managers need to think about making their businesses more complex.
The most successful Australian asset managers are those who manage their cost-to-income ratios at 55 per cent or less, according to a survey by consultants Investit.
Australian asset managers are among some of the best run fund-management businesses in the world and for a short-time may enjoy not having to take into account new regulations that their US and European counterparts are being forced to confront, reports Investit.
“Firms in Australia probably need to look at how new regulations and market conditions have affected their cousins in Europe and the US,” says Doug Neill, an Investit principal.
Investit’s survey of global asset managers included small firms that typically invest in one asset class. Asset managers with large amounts of assets under management but with low-margin products, as well as fund managers with many different businesses were also surveyed.
The 63-page survey, Building Your Business Efficiently, will not be made public.
Neill says the survey concluded that all asset-management models can work well and that size does not matter.
“Culturally, high performance firms do feel different,” says Neill. “There is no procrastination. They have a clear focus and rigorous business management.”
He warns that asset managers need to think about making their businesses more complex.
“Concentrating on selling more of what you’re good at can increase revenue without the increased complexity and costs,” says Neill.
