A year after the coronavirus pandemic struck, publicly traded asset managers in North America and Europe saw record growth in revenue and assets under management in the first quarter, according to data compiled by Casey Quirk, a business of Deloitte Consulting.
The asset manager consultant's analysis of 26 listed asset managers with a combined $20 trillion in AUM as of March 31 shows that aggregate revenue in the first quarter increased 3% from the previous quarter and 20% from the first quarter of 2020. Meanwhile, AUM rose 3% from the fourth quarter and 30% from the same period the year earlier.
"Asset managers are reaping the rewards of strong capital markets, with many firms increasing their hiring and compensation, even with the pandemic as the backdrop," said Amanda Walters, a principal at Casey Quirk, in a news release Wednesday. "Alternatives managers outperformed their traditional peers from a revenue, margin and organic growth perspective, and most firms posted inflows into their strategies."
Ms. Walters added: "Because continued market appreciation is far from guaranteed, many managers are focused on identifying growth strategies, such as pursuing new alternative capabilities, expanding packaging options such as ETFs, and developing authentic sustainable investing processes and strategies."
Public managers are also increasing staff headcount, Casey Quirk said in its release. From 2016 to 2020, manager headcount increased at an annualized growth rate of 6% for traditional firms and 8% for large alternative managers. Compensation, meanwhile, rose nearly 2% during the first quarter.
