We have regularly been surprised by the focus of many firms within Asset Management on pure AUM size over revenue and profitability. The bigger the better was the default position, much of it driven by vanity. Conversations with senior leaders over the last couple of years however have indicated a noticeable shift towards profit margins rather than crude AUM growth. So while this research has some merit we expect a slightly different direction of travel for the industry.
AUM chasing is leading to 'cannibalisation' of asset management industry