Asset managers ran for shelter after the financial crisis, and slashed staff in a bid to maintain their profitability. Now the thunder clouds are clearing and analysts believe there is a silver lining for the funds industry – they say traditional asset managers’ staff cuts have put them in an excellent position now to profit from rising markets.

Personnel costs take up a substantial portion of asset managers' expenses and after slashing headcount, analysts say that operational leverage has increased across the industry, meaning that fund houses can generate more profit on each dollar of revenue compared with a year ago.