Increasing M&A, ESG and fund closures: Moody's key changes to asset management in 2019

The group, in its asset management outlook for 2019, gave the industry a "stable" rating due to the view fund houses can utilise technology to improve client experience, adapt their cost structures and use M&A to increase scale and diversification. Moody's also forecasted asset managers' revenue growth would continue into 2019, but this would be moderate due to rising volatility causing reposition and outflows from funds, and further compression of fees. "Tightening financial conditions will elevate volatility, credit spreads and term premia," the report said. "[This is] negative for ...