Consultants at PricewaterhouseCoopers (PWC) have just released a report after a comprehensive survey of the fund management industry. The findings indicate that we are in for a significant round of mergers and acquisitions in the fund management arena, lead in the main by US money managers.
PwC polled 70 US fund management firms and almost 80% confirmed that they expected to make an acquisition in the next three years. Only one in six said that they planned to sell units.
More than half of the European fund management firms questionned said that they expected the number of companies and funds to reduce by up to 30% in the next three years.
The survey suggests that US firms are likely to be more aggressive on the acquisition front, although there appears to be a desire to pursue a growth strategy based on their areas of speciality, rather than to become more broader-based fund management businesses. Most European fund managers are said to be still in the throes of cost-cutting, although their Asian counterparts are thought to be attempting to gain market share and increasing their product offering.
The UK fund management market is thought to be a bit of an enigma, with markets that are easy to access, but where profits remain hard to come by.