Fund groups see profits fall 3% in 2016 as industry reaches 'turning point'

According to a report by McKinsey compiled for FTFm, worldwide profits for mutual fund companies fell 2.9% to €66bn (£58.2) during 2016.  This is despite total assets under management across these firms rising by 3% to €66trn, a dynamic McKinsey called a "remarkable turning point".  The report pinned the fall in profits on higher operating costs, which rose 4.8% during 2016, pressures on revenue and competition from passive providers. During the year, new business inflows for traditional fund managers fell by 80% worldwide to €435bn, the lowest since 2012 as a result of political u...