Asset managers return to ‘growth mode’

Asset managers return to ‘growth mode’

Investment performance will be a big challenge for almost half of global asset managers in 2014, according to a new survey.

Regulation has been a dominant concern for the industry in recent years but performing well is becoming an equal priority.

The findings of Linedata’s survey reveal that regulation was a top concern for 49% of managers, while 47% said investment performance was their main challenge.

“As our clients look to their future, it is clear that they are once again in growth mode and ready to invest globally in IT initiatives,” said Mike de Verteuil, business development director and member of the executive board at Linedata.

The majority of managers (48%) said maintaining performance would be their greatest challenge in the next 12 months.

“The regulatory storm that the asset management industry has weathered in recent years no longer appears as overwhelming as it may have one year ago,” said Linedata in a statement.

Indeed, the industry had some clarity in 2013 over several regulations including Basel III, Dodd-Frank, and in the EU Solvency II, Fatca and the Alternative Investment Fund Managers’ directive after years of uncertainty.

Demands of investors were a challenge for just 28% of managers while only a fifth are concerned about finding new investment opportunities.

Implementing new technology was also on managers’ to-do lists. More than 40% (43%) of respondents said they were considering moving a part of their businesses to the cloud, while 33% said lowering costs is a top challenge.

This indicates that firms are seeking to focus on their core businesses while slowing external experts to manage their technology.
Data management and compliance solutions were the top IT priorities for all respondents.

Linedata surveyed firms across Europe, North America and Asia.