Global asset management dwarfs banks in returns

GLOBAL asset managers have seen a strong surge in assets and put up a firmer performance than that of banks on a shareholder return basis, a McKinsey report showed.

In terms of return on equity (ROE), the asset management industry remains highly attractive with an average of 19 per cent as at May this year, said the report. Global banks, hit by severe regulatory costs, are returning an average ROE of 10.6 per cent.

Average ROE, in this case, is calculated as the trailing 12-month earnings, against the average equity for the period end-May 2013 to end-May this year.