PwC: Asset management costs to drop 20% by 2025

first_imgPatrick Heisen, partner at PwC, said this was likely to reverse as fees came under more pressure.“This is in part thanks to the regulation of the European Markets in Financial Instruments Directive (MiFID II), which has lead to greater cost transparency, but also to institutional investors becoming more cost-conscious,” he said.Heisen added that the introduction of cheap passive investment products had accelerated this trend.“Although interest in active products is to remain, their added value must be better demonstrable to institutional investors,” he said.PwC concluded that costs would come down across all asset classes, and would affect cheaper passive products and more expensive hedge funds.Fees for passive investments were expected to drop from 0.15% to 0.12%, PwC predicted, while costs for active equity mandates would fall from 0.54% to 0.44%.“At these funds, we see the emergence of alternative fee structures, with the fee in part linked to outperformance,” Heisen said.PwC indicated that the predictions applied to worldwide investments, but said it expected that decreases would be more significant in Europe and Asia, as the fees were higher relative to those in the US.According to Heisen, asset managers should adjust their fee policy to the wishes and goals of institutional investors, adding that variation in fee models was still limited.Innovation and rationalisationPwC also recommended asset managers intensify product innovation, such as passive smart beta funds or funds investing in illiquid classes, including private loans.“Moreover, asset managers should made clear choices, for example through rationalising their propositions,” the group said.It said it expected a quarter of investment funds currently available to investors to disappear in the next few years.Asset managers should also focus on retaining talented staff with an attractive working environment, PwC added, as technology was required to reduce costs.However, Heisen also warned pension funds not to be too fixated on costs “as pension funds are long-term investors who also want asset managers still to exist in five years’ time”.“Therefore, it is also important to check whether an asset manager is also preparing for the future, for example through sufficient investments in technology and digital infrastructure,” he said. Asset management costs for all asset classes are expected to drop by 20% by 2025 as fees are increasingly based on performance, according to PwC.In a new report – Asset and Wealth Management Revolution: Pressure on Profitability – the consultancy argued that asset managers must embrace new technologies in order to cushion decreasing income.PwC based its forecast on an analysis of the annual reports of 64 asset managers with combined assets under management of €40trn.The past five years were a golden period for large asset managers, PwC said, as margins rose by almost 16% and costs fell almost 16% relative to an income decline of almost 10%.last_img read more

Philippines ready for tougher full Ironman

first_imgIn fight vs corruption, Duterte now points to Ayala, MVP companies as ‘big fish’ Lights inside SMX hall flicker as Duterte rants vs Ayala, Pangilinan anew Volcano watch: Island fissures steaming, lake water receding Participants then go for the last stretch with a two-loop run passing scenic views of the coast under the sweltering heat.“For all the first-time Ironman athletes out there, a full distance is not two 70.3s,” said Uytengsu. “I promise you it’s gonna be a tougher course.”“But when you come across the finish line and they call your name and they say you are an Ironman, you earned every minute of that course so we are proud we are able to break the full distance here and see what happens after Sunday if we’ll be back.”Sports Related Videospowered by AdSparcRead Next The full Ironman, which is a 3.8-kilometer swim, 180 km bike, and 42 km run, will now be the centerpiece on Sunday instead of the usual Ironman 70.3. Although, the half Ironman remains part of race day as well as the age group classification.Kiwis Cameron Brown, a 12-time Ironman champion in New Zealand, and Simon Cochrane are among the top contenders in the Male Pro category as they look to make history as the inaugural winner of Ironman Philippines while Filipino Arland Macasieb hopes to make a good account of himself against the tough field.A special medal, made by renowned sculptor Daniel dela Cruz in collaboration with weavers from war-torn Marawi, will be given to each Ironman finisher.But it will be a grueling road to the finish.The race begins at ACEA beach as competitors traverse the 1.9-kilometer swim twice before riding out of Subic Bay and into the smooth roads of the Subic-Clark-Tarlac Expressway (SCTEX) and back to Remy Field.ADVERTISEMENT Steam emission over Taal’s main crater ‘steady’ for past 24 hours LATEST STORIES View comments Dave Chappelle donates P1 million to Taal relief operations PSI hits back at judge: Everyone aware of stakes Jury of 7 men, 5 women selected for Weinstein rape trial China population now over 1.4 billion as birthrate falls Special medals will be given to the Ironman finishers this year. Photo by Tristan Tamayo/INQUIRER.netIt was only last year when it was announced that the first full distance Ironman in the Philippines will be held.Wilfred Uytengsu, a grizzled triathlete himself and founder of Sunrise Events, Inc. which organizes Ironman Philippines, had long entertained the idea of staging a full Ironman race.ADVERTISEMENT Nadine Lustre’s phone stolen in Brazil Winfrey details her decision to withdraw from Simmons film Sinas: 2,500 NCRPO cops poised to support Taal eruption relief ops PLAY LIST 02:15Sinas: 2,500 NCRPO cops poised to support Taal eruption relief ops03:08Total evacuation in full swing in Taal00:50Trending Articles02:14Carpio hits red carpet treatment for China Coast Guard02:56NCRPO pledges to donate P3.5 million to victims of Taal eruption00:56Heavy rain brings some relief in Australia02:37Calm moments allow Taal folks some respite03:23Negosyo sa Tagaytay City, bagsak sa pag-aalboroto ng Bulkang Taal01:13Christian Standhardinger wins PBA Best Player award MOST READ Don’t miss out on the latest news and information. Uytengsu believes the timing is ripe with triathlon as popular as ever in the country.“I’ve wanted to do a full for the last five years but I just didn’t think one, the community was ready,” Uytengsu said during a press conference Friday at Subic Bay Exhibition and Convention Center here.FEATURED STORIESSPORTSGinebra beats Meralco again to capture PBA Governors’ Cup titleSPORTSAfter winning title, time for LA Tenorio to give back to Batangas folkSPORTSTim Cone, Ginebra set their sights on elusive All-Filipino crown“If you look at how the sport has grown for the last five years, it’s exponentially.  Far wilder than my imagination could ever take us. And secondly, I also think that we have to be ready as a community to embrace this distance,” he said.As a testament to triathlon as a fast-rising sport, there will be around 1200 participants for the whole distance Ironman alone.last_img read more

Fortifying for Future Eventuality US to Build Disease Control Center in Liberia

first_imgThe US Government, learning from the immediate past experience of the outbreak of the Ebola Virus Disease in West Africa and its devastating human cost, has announced an ambitious plan to construct an annex of its Center for Disease Control and Prevention (CDC) in Liberia and two others in Guinea and Sierra Leone.According to CDC’s Deputy Director for Ebola Response to Liberia, Desmond Williams, the move is in an effort to quickly detect and control any infectious disease outbreak in the future.Speaking at first National Conference on Ebola in Monrovia, recently, Dr. Williams disclosed that the CDC is poised to establish offices in Liberia, Guinea and Sierra Leone to counter the recurrence of the Ebola virus or the outbreak of any other infectious disease.  He was serving as one of three panelists at the conference. The US health practitioner, who has a Sierra Leonean background, noted that the CDC’s local office will help the Ministry of Health develop a surveillance system and the collection and storing of data for relevant infectious disease control purposes.Dr. Williams indicated that Development Laboratories, which help with early detection and help quickly contain the outbreak of diseases, exist throughout the world and the CDC will ensure that similar facilities are established in Liberia and the rest of the Mano River Union (MRU) basin.Contributing, moderator Deputy Head of the Incident Management Team, Dr. Francis Kateh, indicated that the issue of surveillance is very critical to detecting and containing infectious diseases, especially as Liberia has very porous borders with its neighbors.Dr. Kateh said the EVD had a devastating impact as a result of the lack of proper surveillance systems in the three countries.Following reports of the decline in the EVD infection rate in the three most affected countries, the European Union recently hosted a conference to mobilize support for their post-Ebola reconstruction efforts.The most urgent need for the three countries is revamping their fragile health systems, with the building of health infrastructures, equipment and the training of more health practitioners.The building of the CDC annexes in the three countries will ensure an immediate response whenever there is an outbreak of any infectious disease in the West Africa sub-region.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more

Car catches fire after hitting power pole; outages follow

first_imgA car burst into flames and caused power outages after veering off the roadway and into a power pole Sunday afternoon, north of Dollars Corner.The crash was first reported shortly before 1 p.m., at about the 6900 block of Northeast 259th Street.Clark County Fire & Rescue spokesman Tim Dawdy said a driver was heading east when the car went off the road and into a power pole.The impact knocked down the pole and power lines, the latter of which set the car on fire.Firefighters arrived to find the car engulfed in flames, Dawdy said.Dawdy said the driver escaped the vehicle, and Clark County sheriff’s Sgt. Chris Luque said no injuries were reported in the crash.The crash and response affected traffic for a few hours, and, at peak, left several hundred customers without power, according to Clark Public Utilities.last_img read more