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Exterior of the Royal Bank Plaza towers at the corner of Bay St. and Wellington St. West in Toronto on April 17 2014.
Exterior of the Royal Bank Plaza towers at the corner of Bay St. and Wellington St. West in Toronto on April 17 2014.
(FRED LUM/THE GLOBE AND MAIL)

Stiff competition means asset managers ‘can no longer be picky’

Canada’s biggest asset managers try to be selective when bringing on new clients, searching for those with the fattest margins, but the domestic market is now so saturated that a new strategy is necessary, according to RBC Dominion Securities analyst Geoff Kwan.

Because bond and equity markets are performing so well, asset managers are back in favour as investment opportunities. Until now they’ve rode the hot markets, which churn out better money management fees, but drumming up extra growth is hard to do at home because so many firms chase the same high profile clients and business lines.