Asset managers prepare for staff reductions in challenging 2023

Compressed growth predicted with streamlined product offerings

clock • 6 min read

Asset managers have continue to record outflows, underperformance and declining revenues in the opening weeks of 2023, continuing the trend set in motion during Q4 2022 results season.

With another challenging year ahead experts are anticipating significant cost cutting, while firms themselves are looking to refine their product offering to ensure it its fit for purpose.  Bank of America heralded the beginning of the year by downgrading its outlook for UK asset managers, such as Schroders or Ninety One, due to their higher sensitivity to recessionary risks, near-term flow headwinds and premium valuations. In mid-January, BlackRock revealed the sheer impact of last year's markets, as it reported that $1.4trn of its assets had been wiped out and profits took a hit. ...

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