Wed, Jun 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

SunGard survey: Asset managers faced with challenge of achieving scale and staying focused on their area of expertise

Thursday, December 20, 2012
Opalesque Industry Update – The SunGard Asset Arena 360 Boutique Asset Manager survey recently examined the prospects for institutional boutique asset managers, the obstacles that lay ahead, as well as strategies for growth in an increasingly challenging cost-pressured industry.

Download the full report here: www.sungard.com/assetarena360/boutiqueassetmanagement

“Asset managers are faced with the challenge of trying to achieve scale and staying focused on their area of expertise. This has been particularly true as institutional investors continue to consider investments with specialized investment managers that can offer exposure to specific growth strategies. This has increasingly led to a two-tiered marketplace, with large multi-service asset managers controlling the lion’s share of activity, and the remainder going to niche players, including independent boutiques,” said Adam Sussman, director of research, TABB Group. “But, smaller managers need to meet the same due diligence criteria as larger firms before they win a significant mandate.”

Key survey findings include:

• Advantages:
- Being owner-operated ranks among the top drivers of success within the boutique fund industry, but nearly half of respondents (49%) attribute the rise in boutiques in part to a reaction against large funds.
- Some 70% of the SunGard survey respondents believe that an “hourglass” or “Big Squeeze” phenomenon—in which middle-market players are increasingly marginalized—will likely continue to re-shape the marketplace.
- Larger players enjoy economies of scale, while smaller asset managers are profitable on fewer assets than larger firms as they offer more unique products and can therefore charge higher fees, said 60% of respondents.
- 9 out of 10 respondents are looking to technology to help their business meet growth challenges and satisfy increased demands.

• Obstacles
- For those looking to set up shop, cost of operations, regulation, the burden of due diligence and compliance, the ability to show institutional grade control systems and IT investment are the top five barriers to entry.
- Boutiques have a clear view of the factors that could make or break their enterprises in the next year, and have identified investor confidence, investment returns, rising costs, risk transparency and the Eurozone crisis as the top five factors on their watch lists.

“Owner-managers need real-time information at their fingertips concerning their clients, portfolios, trades in progress, risks and compliance issues, with a single point of truth and a full audit trail,” said Paul Compton, SunGard’s head of strategy for asset management. “To win new business and service ‘continuous due diligence’ demands, they need to be able to demonstrate the integrity of their processes to potential investors. And to be competitive they have to stay lean. That’s the power of Asset Arena 360, a single integrated platform for all these functions, hosted and managed by SunGard to help keep the internal costs of owning and operating technology to a minimum.”

www.sungard.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. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.

  2. Investing - In Amazon's shadow, hedge funds take aim at Brexit-hit retailers[more]

    From NYTimes.com: Hedge funds have significantly stepped up bets against Britain's traditional high street retailers, as the sector struggles with online competition, worries about a stretched consumer and weakening sales and profits. The risks were on full display on Tuesday when shares in Debenham

  3. ...And Finally - Nighttime barbecue festival in downtown Memphis![more]

    From Newsoftheweird.com: On May 19, Carl Webb and his wife left a nighttime barbecue festival in downtown Memphis and headed home. They drove 14 miles on an interstate highway before a police officer pulled them over to ask if Webb knew there was a body on his trunk. The man was clinging to the lip

  4. Global macro hedge funds lose on sharp drop in oil prices[more]

    Komfie Manalo, Opalesque Asia: Global macro hedge funds suffered losses due to the sharp fall in oil prices and the drop in U.S. and U.K. Treasury yields, Lyxor Asset Management said in its Weekly Briefing. The Lyxor Global Macro Index fell -1.0% from 13 June to 20 June (-3.4% YTD). The Lyxor

  5. State pension plans see liabilities increase in 2016 - Wilshire[more]

    Bailey McCann, Opalesque New York: The funding ratio of state pension plans dropped four percentage points to 69 percent in fiscal year 2016, according to Wilshire Consulting. A year ago, Wilshire Consulting's annual state funding report uncovered a funding ratio of 73 percent. "U.S. stock pe