WEALTH managers' cost-to-income ratio improved in 2013, helped largely by asset appreciation. But Boston Consulting Group (BCG) warns in its latest global wealth report that the improvement may not be sustainable as cost levels have actually remained high.
Asia-Pacific wealth managers' cost-to-income ratio showed the greatest improvement from 71 per cent previously to 67 per cent. This is below the global average of 70 per cent.
BCG said asset growth and corresponding revenue increases have taken some pressure off the cost side for wealth managers. But overall costs still rose by 3.5 per cent. "If equity markets lose their momentum for any length of time, pressure will rise again - putting some...
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