Different firms will pursue different
strategies to improve proftability.
For instance, as
a more specialised player, Credit Suisse Asset
Management is targeting an increase in pre-tax
profit by over Sfr200m by 2018 by scaling up
existing businesses, developing new offerings,
enhancing distribution and regionalising their
approach beyond Switzerland. Through a mild
scaling up it should be possible to improve costs
from over 80 per cent of income today to 70 per
cent, although this will still be above the industry
average of 64 per cent.
For Natixis, majority-owned by French Bank
BPCE, scale has already been attained and the
key now is to find efficiencies. Natixis’ multi-
boutique model was always likely to be less
efficient than a more centralised business.
Nonetheless the franchise is over one-fifth larger
than its American competitor, Affiliated Managers
Group, which also has a similar operating model,
yet has lower costs than Natixis.