Low interest-rate climate hitting asset servicers
Some are waiving fees to prevent negative yields for investors and that’s hitting top-line growth, even as regulatory changes support their business models, reflects Northern Trust.
Despite regulatory changes worldwide that are supportive of asset servicers’ business models, the headwind of low interest-rates is hampering top-line revenue growth, notes Northern Trust.
The US firm’s second-quarter financial results show its fees from investment management grew by just 3% globally year-on-year to $71.8 million. That is partly due to the fact that persistently low short-term interest rates have led to fees being waived for money-market mutual funds.
Given the …
Sign In to Your Account
Access Exclusive AsianInvestor Content!
Please sign in to your subscription to unlock full access to our premium AI resources.
Free Registration & 7-Day Trial
Register now to enjoy a 7-day free trial—no registration fees required. Click the link to get started.
Note: This free trial is a one-time offer.
¬ Haymarket Media Limited. All rights reserved.