Sun, May 24, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

SEI poll: investment managers optimistic but remain focused on increasing efficiency

Thursday, April 14, 2011

Phil Masterson
Opalesque Industry Update - Addressing New Regulatory Requirements Remains a Significant Challenge

Despite ongoing regulatory challenges and political uncertainty, investment managers are optimistic about their business outlooks. They plan to continue to invest to increase efficiency, reduce risk, and enhance the client experience, according to a poll released today by SEI.

The poll, conducted at a recent event for the company’s investment manager clients, shows that nearly all participants (88 percent) are optimistic about their firms’ business prospects over the next three years. There are a number of reasons behind the optimism, but positive market expectations (29 percent) and firm-specific strengths, such as superior performance (22 percent) and well-respected brands (19 percent), were cited most frequently. For the minority of managers (12 percent) expressing concern about their prospects, weak distribution strategies and insufficient distribution resources were the biggest concerns.

The poll revealed that while many managers are optimistic, they are not complacent, with many firms making investments in the areas of operations, marketing and distribution, and client service. In fact, the vast majority of managers polled have already taken steps, or have plans to take steps, to improve their growth potential, with 84 percent making material personnel or technology investments to enhance client service. The top areas for investment in 2011 cited in the poll include: hiring of additional marketing and distribution personnel (34 percent), back office operations and technology (28 percent), and compliance and regulatory functions (17 percent).

“It’s refreshing to hear that optimism is the prevailing sentiment among managers, but it’s even better to know that firms continue to invest to position themselves for the future,” said Phil Masterson.

The poll also revealed that meeting new regulatory requirements remains the top challenge among managers, with one in three respondents (33 percent) identifying this as the most significant challenge to the industry over the next 12-18 months. Participants were split on the effect of new financial regulation, however; half of those polled believe new regulations will have a significant effect on the profitability of their firms while 41 percent of participants expect insignificant impact.

Managers were not split, however, on the top channels for growth for the next 12-18 months, as nearly half of respondents (46 percent) ranked the institutional channel as the greatest opportunity for asset growth among client segments and distribution channels. Other respondents named RIAs/IFAs (20 percent), retirement plans (18 percent), and sovereign wealth funds (11 percent) as top growth opportunities.

The poll was completed by C-level and senior executives across management operations, distribution, and investment professions. For more details a summary of the poll is available for download on SEI’s website: Source

(press release)

SEI is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of December 31, 2010, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $416.0 billion in mutual fund and pooled or separately managedassets, including $172.3 billion in assets under management and $243.7 billion in client assets under administration.

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner