Investment assets back at pre-crisis levels
THE AMOUNT of assets under management at the UK’s largest investment managers is now greater than it was before the financial crisis started, big four accountant KPMG said yesterday.
The accountancy firm released its annual financial reporting by investment managers 2014 report, which analyses the most recent annual reports of the UK’s heaviest-hitting investment firms and examines key trends affecting the industry. The 2014 edition reported that the respective firms’ assets had grown 13 per cent on average during the year, with all but three of the managers analysed reporting figures above pre-crisis (2007/2008) levels. Those that grew assets under management above 10 per cent cited net inflows, improved equity market performance and favourable exchange rate movements as reasons for the hike.
KPMG partner Jon Mills said: “From analysing the past financial reports, we can shed some light on the key trends impacting the investment management industry. However, as the industry continues to grow, there are new opportunities for firms to capitalise on key trends such as technology, developing markets and changing demographics.
“The difficulty of responding to these changes will be compounded as they come at a time when firms are under increasing pressure to demonstrate corporate governance, improve reputation, address remuneration, reduce fees and adapt to new regulation. While change can be fearful, firms that ensure their investors, regulators and other stakeholders are adequately informed are best positioned to embed confidence and secure long-term growth.”