Revenue from asset servicing, its largest business, was down 7% in comparison to the first quarter of last year at $1.4 billion
JP Morgan’s prime services team surveyed 227 institutional investors with a combined total of $706 billion in hedge fund assets.
With increased requirements on fund transparency, it could provide further opportunities for custodians to offer analytics services to asset managers.
The research found that many hedge fund managers have not revisited their agreements since the implementation of AIFMD in 2014.
The decision comes amid wider fee pressure from asset managers and other client types as they look to reduce their own operating costs.
Asset managers have little choice but to try to minimise their expenditure on custody as they face a world of pressures.