Thu, Feb 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

SEI poll: fund managers remain optimistic in spite of economic uncertainty

Thursday, November 10, 2011

Phil Masterson
Opalesque Industry Update - Uncertain Economic and Regulatory Environments are Increasing Concerns About Future Business Growth

A majority of investment managers (57 percent) are optimistic about their firm’s prospects over the next three years, according to a poll released today by SEI.

The poll, conducted at SEI’s annual CFO Forum for Alternative Investment Managers in London, found that positive market prospects were the main reason behind this optimism. However, the remaining participants (43 percent) were concerned about their firm’s prospects, marking a substantial increase from the minority (12 percent) who expressed concern in a similar poll conducted in April. Of those with a pessimistic outlook, most cited negative market prospects, weak branding, and uncompetitive performance as prominent concerns. Additionally, 44 percent of participants revealed that economic uncertainty will be the most significant challenge facing the industry in the near future.

Also weighing heavily on the minds of investment managers is the regulatory climate. Two-thirds (67 percent) of those polled listed regulation as a critical consideration in domicile selection. Furthermore, respondents argued that satisfying regulatory requirements is their firm’s greatest operational challenge, even more so than satisfying investor expectations.

However, managers still have their focus on investors, especially given that a majority (55 percent) indicated that investor confidence is worse or has not improved since the aftermath of the financial crisis. Conversations at the forum touched on the heightened due diligence managers are facing, as well as the increased transparency investors are looking for when it comes to understanding where and how returns are generated.

“Optimism is understandably tenuous at present since investment managers are facing an empowered investor base, an avalanche of regulations, and an uncertain economic climate.” said Phil Masterson, Managing Director for SEI’s Investment Manager Services division. “However, it’s reassuring to see that firms continue to focus on the future and work on identifying growth opportunities. It is clear that managers are under pressure and need help from their partners in order to focus on their core business and ultimately thrive in the uncertain economic climate and unrelenting regulatory environment.”

When identifying where they see opportunities, respondents pinpointed institutional assets as the biggest contributor to future growth, with only 11 percent believing organic growth would be a key factor. When focusing more specifically on the investor types or channels that promise the greatest growth, investment managers cited pension plans. The vast majority (73 percent) also stated that there will be a substantial increase in interest towards hedge fund compliant UCITS funds over the next year.

The poll was completed by CFOs, COOs, and senior executives across management operations, distribution, and investment professions.

(press release)

SEI's Investment Manager Services division provides comprehensive operational outsourcing solutions to global investment managers focused on mutual funds, hedge and private equity funds, exchange traded funds, collective trusts, and separately managed, as well as institutional and private client, accounts. The division applies operating services, technologies, and business and regulatory knowledge to each client’s business objectives. Its resources enable clients to meet the demands of the marketplace and sharpen business strategies by focusing on their core competencies. The division has been recently recognised by the Money Management Institute as “Service Provider of the Year,” by Buy-Side Technology as “Best Fund Administrator,” and by HFMWeek as “Best Single Manager Hedge Fund Administrator (Over $30B AUA—US),” and “Best Funds of Hedge Funds Administrator (Over $30B AUA—Europe).” www.seic.com

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: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  2. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  3. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac

  4. Low volatility funds fail to protect investors[more]

    From FT.com: A number of exchange traded funds (ETFs) designed to protect investors from sharp stock market gyrations lost more money than mainstream US stocks during a sell-off this month, underperforming in precisely the conditions in which they were meant to thrive. Low volatility ETFs, lau

  5. Legal - Hedge funds fight to save M&A arbitrage strategy, Fannie Mae and Freddie Mac ruling blow to hedge funds[more]

    Hedge funds fight to save M&A arbitrage strategy From FT.com: Hedge funds which use the US courts to wring higher prices for merger and acquisition deals are fighting to save the lucrative investment strategy, after a Delaware court ruling that threatens to shut it down. Verition Partner