Industries · Financial services
Asset and wealth management
How asset managers and private banks earn a fee on the money they manage, why assets under management move with markets and flows, why passive funds are squeezing fees, how private banks serve wealthy families, and what sovereign wealth funds are, with examples from the US, Europe, the Gulf, India, and Singapore.
Key takeaways
- Asset managers and wealth managers are paid a small percentage of the money they look after, every year.
- Revenue is AUM times the fee rate for each product, added up. A shift in mix from expensive to cheap products can cut revenue even while AUM grows.
- Scale wins in passive products, skill and brand win in active and private markets, and trust wins in wealth management.
- Explain revenue as assets under management times the fee rate
- Build an AUM bridge from flows and market moves
- Explain active versus passive funds and why fees keep falling
- Describe private banking economics per relationship manager
- Explain what sovereign wealth funds do and crack typical cases
Lessons
How asset and wealth management works
Clients, products, the value chain, fees, costs, active versus passive, private banking, and sovereign wealth funds.
Asset and wealth unit economics: fee rates, mix, and the AUM bridge
Calculate revenue from a product mix, the cost of a shift to passive, and the contribution of a private banker.
Asset and wealth management: players, trends, regulation, and how to crack the cases
Examples of managers, private banks, and sovereign funds by region, trends from 2024 to 2026, regulation basics, and typical case prompts.
Worked cases in this module
Look it up
Key terms