Asset managers face margin pressure as AuM declines

Dubai: In keeping with the global decline the growth of assets under management (AuM), the Middle East also witnessed a sharp fall in the total AuM last year, according to a study by Boston Consulting Group (BCG). Globally, AuM stalled with marginal growth last year. The BCG report shows the global value of AuM rose just 1 per cent in 2015, to 71.4 trillion (Dh262 trillion) from 70.5 trillion in 2014, after growing 8 per cent that year, and at an average annualised rate of 5 per cent from 2008 through 2014. In contrast, the Middle East's AuM declined 10 per cent and net new flows of assets, revenue growth, and revenue margins all dipped lower in 2015. In absolute terms the region's AuM plummeted from 1.4 trillion in 2014 to 1.3 trillion in 2015.