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Asset Managers Face Margin Squeeze as Infrastructure Costs Rise

The landscape of asset management is evolving, with infrastructure no longer relegated to the back office but becoming a pivotal element of strategic planning. According to a recent report by PwC, asset managers are experiencing significant strain on their margins as infrastructure-related expenditures escalate. This shift in focus is underscored by a staggering 19% decline in profit per asset managed since 2018, with projections forecasting an additional drop of 9.1% by 2030. As investment decisions now hinge on infrastructure, it is essential for firms to reassess their strategies accordingly.

The Growing Significance of Infrastructure

In today's asset management arena, infrastructure plays a crucial role in determining competitive strategies. The report