NEW YORK (June 25, 2025) – ISS Market Intelligence (MI), a leading provider of data, analytics, insights, media, and events solutions to the global financial services industry, announced the publication of its latest edition of the U.S. Asset Manager Profitability Report.
The U.S. Asset Manager Profitability Report, published by ISS MI, analyzes the financial performance of 23 publicly traded asset managers and uncovers both encouraging signs of resilience and emerging structural challenges.
The 2024 report reveals a strong recovery in profitability across the U.S. asset management industry following a turbulent 2023. According to the report, 19 out of 23 public asset managers reported higher operating margins in 2024, with the median margin rising from 25.1 percent in 2023 to 29.0 percent: a return to the industry’s 10-year average. This rebound reflects a broader recovery in market conditions, improved investor sentiment, and disciplined cost management across the sector.
Operating income surged by 20.5 percent, driven by an 8.8 percent increase in revenue and a modest 4 percent rise in operating expenses. These gains mark a sharp reversal from the previous year’s downturn and suggest that many firms have successfully adapted to a more cost-conscious environment.
The report also highlights a critical inflection point for the industry. Despite the recovery in margin, revenue generated per dollar of assets under management (AUM) fell to an all-time low in 2024, underscoring the persistent pressure on fees. Notably, margins were preserved only because expenses as a share of AUM also declined to record lows, thanks to years of consolidation, automation, and operational streamlining.
Christopher Davis, U.S. Head of Research and author of the report commented: “The industry’s profitability has rebounded, but the underlying economics are shifting. Firms are doing more with less. The top end of the market is showing signs of saturation, with weaker pricing power and growing competition from passive strategies expected to limit further gains without continued innovation.”
The report warns that a profitability ceiling may be emerging, particularly for the industry’s most efficient players, without further innovation to drive top-line growth. While margins improved across the board, gains were modest among top performers, suggesting that the traditional levers of growth — pricing, sales momentum, and product differentiation — are losing effectiveness in an increasingly commoditized market.
The 2024 U.S. Asset Manager Profitability Report offers a comprehensive analysis of financial trends, strategic shifts, and competitive dynamics shaping the future of asset management. It is an essential resource for executives, analysts, and investors seeking to understand where the industry is headed next.
To learn more about ISS MI’s Asset Management Research, visit https://marketsage.issmarketintelligence.com/research
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About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,400 professionals operating across 33 global locations in 19 countries. Its approximately 6,400 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
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