For over a decade, rising markets followed by rising AuM has been the industry’s growth story. That formula is breaking down.
Average management fees have fallen 23% since 2010. Costs have outpaced revenues for 15 consecutive years, a persistent 34bps gap between cost and revenue growth.
Scale alone no longer protects margins. Firms that close this gap deliberately, rather than relying solely on AuM growth, stand to unlock meaningful value – the difference between being a 30% margin business and an industry leading 50%+.
If you would like to know how BCG Expand can help your organisation accurately diagnose and close this gap, reach out to Charles Tanner.
📩 AI is emerging as one of the clearest ways to address this margin challenge. See how, in BCG’s latest report: The AI-First Asset Manager: Strategy for Growth
