McKinsey Projects Asset Management Return to Growth in 2010

The Financial Times reports that the McKinsey annual Asset Management Survey sees two scenarios for 2010.  The first scenario shows Global Asset Management will see declines in profits in 2010 dropping to 6 basis points of Assets Under Management (AUM) vs. 2007’s much higher performance.  Aggregate industry profit will slide from 2007’s 43 billion euros to 12 billion euros.  The second scenario sees a more benign outcome where 2010 profits may equal 2007 and profits will come in around 10 basis points of AUM.

http://www.ft.com/cms/s/0/7b558d5a-4dc9-11de-a0a1-00144feabdc0.html?nclick_check=1

More info on the prior year’s study in all About Alpha, http://allaboutalpha.com/blog/2008/09/10/mckinsey-banner-year-for-asset-managers-masks-toxic-combination-of-higher-costs-and-lower-growth/   In their past studies, McKinsey has heralded strong growth in "barbell" allocations.  Allocations that look to distributions in ETFs and alternative assets for balanced returns. 

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