2011 to be pivotal year for asset management industry, says Skandia
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Skandia Investment Group has identified 2011 as a pivotal year for the global asset management industry, despite greater pressure and scrutiny from regulators.
A study by the group has made the assessment based on the responses of 40 fund manager groups that carry combined assets under management of over $2 trillion (£1.28 trillion).
Nearly half of those interviewed — 45% — expect to expand into new markets in 2011, with Europe and Asia presenting the best opportunities, and 60% say they will need to take on new investment and distribution staff.
The majority — 62% — say demand for risk targeted funds looks set to grow in 2011 and that the fastest growth for multi-manager will be seen in the retail market.
The survey also reveals the use of platforms is set to surge. About 71% of those surveyed transact at least 25% of their retail business via a platform, with 43% transacting over 50%.
Additionally, 79% say that their business will see a further increase in the use of platforms over the coming years. (article continues below)
Nils Bolmstrand, the chief executive officer for the Skandia Investment Group, says the most gratifying aspect of the survey is the optimistic attitude being expressed by the fund management industry, despite obvious headwinds.
The headwinds in question may refer to 85% of respondents expressing concerns about having to spend more time managing regulatory problems over the next 21 months. Despite this, 76% say the proposed changes to Ucits IV represent an opportunity they are keen to make the most of.
Other results from the survey include 76% saying there will be increasing consolidation over the year and 64% expecting to see the use of performance fees increase further over the next 12 months.
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