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By Maria Katharina HEIDEN, Dr. Carsten WITTROCK, Norman KARRER, and Arnd HEßELER, zeb consulting*
With operating margins of around 37% asset management is still one of the most profitable segments in the financial services industry (compared to an operating margin of 34% for banking or 4% for insurance). The industry is also growing rapidly – by a stable 14% per year over the past half-decade. Global mega trends are driving this upward trajectory, such as the expanding middle class, the shift from deposits to financial assets, increasing life expectancy and growing urbanization. Furthermore the fact that (regulatory) capital requirements are negligible makes asset management a highly attractive business.
However, the industry...
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