Asset-management industry bled $10T in 2008
It will take at least five years for the global asset-management industry to recoup the $10 trillion that disappeared in the last six months of 2008, according to a study released today by Cerulli Associates of Boston.
It will take at least five years for the global asset-management industry to recoup the $10 trillion that disappeared in the last six months of 2008, according to a study released today by Cerulli Associates of Boston.
The firm found that worldwide, the investor assets managed by the industry had shrunk to $43 trillion as of Dec.31, representing a loss of $10 trillion, most of which occurred in that year’s fourth quarter.
Every asset class, except for money market funds, was hit by the downturn.
Assets held in money market funds posted a 1.7% increase, while equity funds were the hardest hit, posting a decline of 39.6%, the report found.
Revenue for asset management firms also suffered.
With the decline in asset values and relocation of assets away from higher-yielding equities to lower-yielding fixed-income and money market funds, net revenue declined, Cerulli reported.
Annual revenue peaked in 2007 with $167 billion. That total dropped to $156 billion in 2008, Cerulli found. And asset-management revenue may decline further, to an estimated $133 billion, in 2009, the report said.
Cerulli also revised its five-year growth forecasts. It now projects that revenue will grow by 5.5% and global assets will increase to $56.5 trillion by the end of 2013.
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