<\/p>\n
Firms strong enough to face down weak flows, growing margin pressure.<\/p>\n
Despite weak flows of new money and intensifying competitive pressure on their margins, the credit profiles of traditional investment managers remain solid, according to Fitch Ratings.<\/p>\n
In a new report, the rating agency said that the financial fundamentals of traditional fund managers have largely proven resilient to headwinds, such as tighter margins and muted net flows of new money in 2024.<\/p>\n
The fund sector\u2019s credit profiles, \u201cbenefit from generally low leverage, sound profit margins, limited credit risk exposure and mostly resilient assets under management,\u201d the firm said.<\/p>\n
\u201cIn Fitch\u2019s view, recurring management fees will remain under pressure largely due to higher competition, reducing the fund managers\u2019 earnings potential, but from a generally high level,\u201d the report said.<\/p>\n
The report also noted that fund firms focused on mass retail clients are more vulnerable to outflows, \u201cdue to their clients\u2019 higher risk aversion in uncertain financial markets and an increase in competing products\u2026\u201d Firms that cater to high-net-worth investors or institutions, \u201chave generally benefited from more resilient net new money flows and are well positioned for challenges in 2025.\u201d<\/p>\n
While traditional managers can defend their franchises, and their margins, by seeking scale and developing products that are not easily imitated by passive managers, such as alternative strategies or by launching active ETFs to compete with passive products, the report also cautioned that, \u201cthe roll-out of more complex, illiquid products to high-net-worth individuals may expose investment managers to reputational and regulatory risk.\u201d<\/p>\n
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Firms strong enough to face down weak flows, growing margin pressure. Despite weak flows of new money and intensifying competitive pressure on their margins, the credit profiles of traditional investment managers remain solid, according to Fitch Ratings. In a new report, the rating agency said that the financial fundamentals of traditional fund managers have largely […]<\/p>\n","protected":false},"author":1,"featured_media":2908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Investments-11.jpg",678,419,false],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Investments-11-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Investments-11-300x185.jpg",300,185,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/11\/Investments-11.jpg",678,419,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=2911"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2911\/revisions"}],"predecessor-version":[{"id":2912,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2911\/revisions\/2912"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/2908"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=2911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=2911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=2911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}