Asset managers will need a significant overhaul to their business models if they are to survive the next five years, and profits could shrink by 2025.

Those are the stark warnings from an asset management study by EY, which says that the next five years will be “much tougher” for investment managers than the previous five, with firms needing to reduce costs by 10.3% under a worst-case scenario if they are to maintain profit levels achieved at the end of 2020.