Overall, expenses have outpaced or matched revenue growth during the past four to five years. (Photo: Bloomberg)
(Bloomberg) — Asset managers can add rising regulatory and technology costs to their list of woes as they struggle to expand revenue amid pressure to lower fees and expenses.
Non-compensation costs, which also include back office processing and office space, make up nearly one-third of total expenses at such firms, up from 26% in 2014, according to an industry study released Tuesday by Deloitte Consulting's Casey Quirk and Aon Plc's McLagan.
Overall, expenses have outpaced or matched revenue growth during the past four to five years, while aggregate fees declined almost 20%, the study found. Industry revenue expanded only 8% from 2015 to 2018, reaching $289 billion. By contrast, assets jumped 20% during that period to $71.8 trillion.
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