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CONFIDENCE in the asset management industry fell sharply in the second quarter of 2010, a survey by Ernst and Young revealed yesterday.
The fall is in line with a volatile equity market and sharply lower closing levels. According to the survey, large asset manager confidence fell from 100 index points in the first quarter to 83.
Asset management companies manage funds on behalf of institutional clients (pension funds) and retail clients (unit trusts).
Small managers also reported weaker confidence, from 89 index points in the first quarter of 2010 to 72 index points.
Chris Sickle, director of asset management at Ernst and Young, said the lower confidence was driven by weaker inflows and income growth despite stable margins.
This was survey number 30 conducted to measure confidence in the asset management industry. The research is conducted by the Bureau for Economic Research at Stellenbosch University.
"Despite the weaker confidence levels of asset managers, these levels remain in line with the long-term average level of 85 index points," said Sickle, who also said asset management confidence continued to track equity markets.