Sat, May 26, 2018
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 - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven