High costs hampering UK fund managers

The UK has the highest fund management costs in Europe but is also the least profitable, according to research from McKinsey & Company. Despite generating high levels of revenue, inflows to the UK fund industry were negated by very high costs as well as a high share of institutional clients. In its seventh annual survey of the economics of the European asset management industry, McKinsey said that while the gap between the most and least profitable country in the region narrowed in 2004, average profitability rose by 9% to 13.9 basis points. In terms of growth, across Europe assets grew ...