Asset managers' porfolios value up 9 per cent

LONDON - Global asset managers are forecast to increase the value of their portfolios by an average compound rate of 9 per cent a year out to 2010 and could be highly profitable, says The Boston Consulting Group.

The group's forecast was partly based on a survey of 50 of the world's largest asset management firms with a collective total of more than US$9 trillion ($12.6 trillion) in professionally managed assets.

Its report said sharpening brand identity, managing distribution tightly, streamlining product portfolios, developing clear cost and scale strategies, and deepening trust and relationships with clients, were critical to managers' achieving this scenario.

The group said that assets under management in the global industry worldwide rose 14 per cent to US$37 trillion in 2003, 14 per cent above the previous year, but managers needed to adjust to less robust equity markets and adopt strong measures to improve the integrity of their businesses if they hoped to remain competitive.

- REUTERS