Investment Managers Report Strong Growth in Assets Under Management

Study Sheds Light on Business Performance, Operational Practices,
Technology Budgeting and Employee Compensation

SAN FRANCISCO, CA–(Marketwired – Feb 6, 2015) – As the global economic recovery has become more firmly entrenched, new survey data shows that investment managers have seen significantly stronger growth in assets under management (AUM) and revenue, despite lingering pressure from investors to lower fees. The findings come from the latest report conducted by Advent Users Group (AUG), an independent organization of investment professionals who use solutions from Advent Software (NASDAQ: ADVS), a leading provider of software and services for the global investment management industry.

Co-sponsored by Advent Software and the Investment Adviser Association, the AUG survey rendered results on financial performance, operational data, and compensation data from 146 U.S.-based firms spanning asset managers, registered investment advisors (RIAs), hedge funds, and family offices ranging in size from less than $100 million to more than $80 billion in AUM.

Participants reported median asset growth of 19.4 percent in 2013 compared to a median asset growth of 9.5 percent in 2012, a significant improvement after years of lagging growth in AUM. Persistent market pressure led to decreases in fees at 62 percent of the firms surveyed; however, propelled by the strong growth in AUM, the average survey participant achieved revenue growth in 2013, with median revenues rising by 14.6 percent from the previous year. "Advent is pleased to once again sponsor AUG's annual survey, which provides valuable market insights and operational benchmarking data that helps investment management leaders make informed business decisions," said Anthony Sperling, EVP, Global Customer Experience, Advent.

"The growth in AUM experienced by survey respondents in 2013 is remarkable compared to what we saw in the immediate years following the financial crisis. With greater confidence in the economic recovery, firms have indicated that they are better positioned to invest in strengthening their operational and technology infrastructure to keep up with regulatory demands."

Additional selected highlights from the report include:

  • Approximately 16 percent of firms surveyed plan to add new asset classes within the next year, with widely reported plans to add alternative strategies to portfolios
  • Spending on technology and operations continues to rise, with firms expecting IT and operations costs to rise an average of 11.5 percent in 2014 from a year earlier
  • Most firms experienced overall client turnover between one percent and 10 percent; however, more than four out of five respondents reported a net increase in the number of clients serviced by their firms
  • Despite declining fees, profit margins crept upward at many firms with median EBITDA margin rising to 23.9 percent from 22 percent a year earlier
The growth in AUM experienced by survey respondents in 2013 is remarkable compared to what we saw in the immediate years following the financial crisis

"We welcome the opportunity to participate in the Advent User Group Operations & Compensation survey," said Michelle McDonough, Partner, Trillium Asset Management. "As an employee owned firm it is in our best interest to provide fair and adequate compensation to our employees who are providing excellent service to our clients. Trillium finds the information in the survey to be an essential resource."


About Advent
Over the last 30 years of industry change, our core mission to help our clients focus on their unique strategies and deliver exceptional investor service has never wavered. With unparalleled precision and ahead-of-the-curve solutions, we've helped over 4,300 firms in more than 50 countries — from established global institutions to small start-up practices — to grow their business and thrive. Advent technology helps firms minimize risk, work together seamlessly, and discover new opportunities in a constantly evolving world. Together with our clients, we are shaping the future of investment management. For more information on Advent products visit The Advent and logo composite are registered trademarks of Advent Software, Inc. Any other company names or marks mentioned herein are those of their respective owners.

About Advent Users Group
The Advent Users Group (AUG) is an independent organization formed in 1998 by a group of investment professionals who utilized Advent products and saw the benefits of having a user group to share information and provide valuable feedback to Advent Software. Advent embraced the idea and now benefits from the collaborative working relationship with the interactive, user-driven group, which boasts nearly 320 member firms. Today, AUG's mission is to be the core person-to-person networking resource for the wealth and investment management industry. For more information about the independent organization or its member services, visit