The growth in asset management income accounts for roughly 35 percent of the growth of the financial sector as a percent of GDP, driven by the opaque fee structures, especially when it comes to alternative investment vehicles.36 But in spite of their high fees, there is little evidence of any advantages, for instance in better long-run performance, when it comes to higher management fees.37 Other key sources of financial profits have come from their privileged position in running the economy's payments system: ATM and sundry other fees levied on normal saving and checking accounts.
The asset management sector has significantly increased its income, contributing to approximately 35 percent of the overall growth in the financial sector as a percentage of GDP. This growth is largely influenced by complex fee structures associated with alternative investment vehicles. Despite these high fees, there is little evidence that they result in superior long-term performance for investors.
Additionally, financial profits have surged due to the institutions' advantageous control over the payments system, including various fees from ATM transactions and standard savings and checking accounts. This suggests that the profitability of asset management and related activities does not necessarily correlate with actual value provided to consumers or improved financial outcomes.
