Sun, Aug 2, 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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner