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Asset Management: The Winners & The Losers

Contributing Editor

25 April 2005

The global asset management sector is experiencing rapid change with specialist providers gaining increasing ground, according to research published by Morgan Stanley. One of the major beneficiaries of these changes is UBS’ wealth management business, said the research. Specialist fund management groups such as passive asset managers, what Morgan Stanley’s research calls "quantitative houses" and alternative asset management, mainly hedge funds, are increasingly the winners in asset management, argues the US investment bank. These groups have been very successful in gathering net new money and generating strong profits. Quantitative specialists like Barclays Global Investors are encroaching into active management and doing well in the process. They now manage an estimated $4 trillion of assets globally, according to the research. At the other end of the spectrum, hedge funds have been extremely successful in mopping up assets. The top 50 hedge fund of funds grew assets 45 per cent in 2004 and hedge funds now manage around $1 trillion in assets, according to Morgan Stanley. Morgan Stanley believes the asset managers who stand out as the winners in fund management in terms of net new money, profitability, gross margins and investment performance include the following:

The report also highlighted what it categorized as the losers in global fund management world, these included: