Fund Managers Profits at Risk Amid Review on Research Costs
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The global fund-management industry may see profitability squeezed if it must pay for equity research that cost investment banks $5 billion last year, according to a report.
The operating margins of asset managers’ active equity firms would fall to 12.5 percent from 23.5 percent if regulators make the industry pay for research now covered by investment banks’ trading commissions, a study released by Frost Consulting & Advisory and Quark Software Inc. said today.