Wall Street & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Trading Technology

12:50 PM
Connect Directly
RSS
E-Mail
50%
50%

[email protected]

A large number of U.S. asset management firms are under spending on client services, resulting in significantly higher outflows of separate account assets

A large number of U.S. asset management firms are under spending on client services, resulting in significantly higher outflows of separate account assets, according to Greenwich Associates' 2005 Competitive Challenges Benchmarking Report, which studied 58 U.S.-based organizations. Asset outflows in 2004 increased from 12 percent to 16 percent as a result of low-quality client service and, to a smaller extent, increased manager turnover and reallocations, Greenwich Associates reports.

The typical asset management firm spent only 4 percent of operating expenses on client services in 2004, the study notes. By comparison, other drivers of firm profitability -- such as sales, executive management and marketing -- account for 8.4 percent, 7.4 percent and 5.4 percent, respectively. <<<

Register for Wall Street & Technology Newsletters
Video
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.