Pressure on fees spreads to wealth management sector

Zurich

WEALTH managers' revenue stagnated last year even as firms boosted assets by almost 4 per cent, highlighting how the pressure on fees is spreading to the lucrative business of managing rich people's money.

Companies responded by cutting expenses to bring the cost-income ratio, a measure of profitability, below 80 per cent for the first time since 2012, according to a report published on Monday by Scorpio Partnership.