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 …
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