Profits for fund management groups shrank by around a third in 2001 as continued stock market underp...
Profits for fund management groups shrank by around a third in 2001 as continued stock market underperformance ate into margins. While institutional inflows rose year on year, pushing overall funds under management up by 2.3%, versus a 0.8% increase last year, net inflows of higher margin, new retail money halved to 6% of assets under management in 2001, according to research by PriceWaterhouseCoopers. Income from retail front-end charges also fell by 46%, although this was partially offset by a corresponding 37% reduction in commission paid to intermediaries. Larger players have been t...
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