Cost Structure Patterns in the Asset Management Industry

Dennis  Campbell; Frances X. Frei

Chapter | Operational Control in Asset Management: Processes and Costs | 2010

Cost Structure Patterns in the Asset Management Industry

Abstract

This chapter examines patterns in the cost structure of asset management firms and establishes two important trends in cost behavior. First, when revenues are growing, "indirect" costs related to sales, distribution, marketing, personnel, technology, and occupancy are far from fixed in this industry. In some cases they are "supervariable" or rising at a faster rate than sales. Second, and in contrast, such indirect costs appear relatively fixed in the face of sales "declines" in this industry. We discuss potential sources of these cost-structure patterns and their implications for cost management efforts as asset management firms move forward from the financial crisis of 2008.

Keywords: Financial Crisis; Asset Management; Cost Management; Financial Services Industry;

Format: Print

Citation:

Campbell, Dennis, and Frances X. Frei. "Cost Structure Patterns in the Asset Management Industry." Chap. 8 in Operational Control in Asset Management: Processes and Costs, edited by Michael Pinedo, 154–168. Denmark: SimCorp StrategyLab, 2010.

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Book | 2020

Unleashed: The Unapologetic Leader's Guide to Empowering Everyone Around You

Frances X. Frei and Anne Morriss

When leaders and aspiring leaders seek out advice, they're often told to try harder. Dig deeper. Look in the mirror and own your natural-born strengths and fix any real or perceived career-limiting deficiencies.

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Keywords: leadership skills; belonging; Leadership; Management Skills; Trust; Organizational Culture;

Citation:

Frei, Frances X., and Anne Morriss. Unleashed: The Unapologetic Leader's Guide to Empowering Everyone Around You. Boston: Harvard Business Review Press, 2020. View Details

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Cost Structure Patterns in the Asset Management Industry

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