In a recent article published by Pensions & Investments, Michael Fitzgerald, a Managing Director in RSR Partners’ Asset Management practice based in Boston, provides insight into how money management firms “facing stiff headwinds are having to make decisions ‘that are maybe a little more drastic.’”
“Every single firm is taking a look at costs and strategy,” said Mike. “Some firms are doing it from a position of strength where they know the business is changing and (are) looking at how (to) get ahead of this and structure (themselves). The other firms are doing it out of necessity, whether from pressure on flows, AUM or increased volatility that may have exposed managers living on the effects of market appreciation. They’ve had to make decisions that are maybe a little more drastic.” When job cuts are occurring, they are “much more tactical or strategic, even surgical, where (managers) are merging certain distribution channels and investment teams as well as (sales) teams,” he added.