Abstract
Are economies of scale to be expected in asset management ? The Asset Management industry in Europe is « normalizing ». Since 2003, growth and performance indicators are comparable to those of other banking and financial activities, and remain below the peaks observed in the 90s. In this context, the opportunity to capture economies of scale appears high in the management agenda. Is it worthwhile to consistently consolidate and standardize teams and infrastructure across locations ? Does external growth bring the expected synergies ? This article analyzes the cost structure from different angles (geography, activity cost drivers, complexity of operating model), and draws upon an annual survey we conduct with European asset managers. It shows that although size remains a relevant driver, it is insufficient to explain by itself the cost position of an asset manager - in particular due to the importance of « complexity costs », and draws the arbitrages and implications for the strategy, operations and organization of asset managers. JEL classification : G23, L11
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