3 reasons asset managers are back in the game this year

3 reason asset managers are back in the game this year (ptmoney.com)

It’s been a testing few years for asset managers with investors fearing risk and loss. However, things are changing, investors are becoming less risk averse and asset managers might be on the up… Here are 3 reasons why.

1. Fears are proving groundless

After the scrapping of commission under the Retail Distribution Review, asset managers feared for the worst. Especially after Hargreaves Lansdown were rated a sell. However, Barclays upped their share price target and encouraged people to buy shares with positive results.

2. Technology and information are giving competitive advantage

Brokers and traders aren’t the only ones who can benefit from social media activity. Asset managers are now able to bypass brokers sticking to original data evaluation. Asset managers can instead invest in their own analysis to access information themselves.

3. They’re getting raises…

JP Morgan paid investment bankers and traders around 3% less. On the other hand, portfolio managers and other asset management executives gained around 6% in their salary and bonuses.

Looks like Michael Kim (and me!) were right. Asset Managers may well be making their come back this year. But what do you think? Let us know in the comments below.

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