Wed, Jun 1, 2016
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 - Scientist turned hedge fund founder cuts profitable Aussie short, Pelargos joins hedge funds’ bet on turnaround at Honda, Managers set to cash in on infrastructure debt upswing[more]

    Scientist turned hedge fund founder cuts profitable Aussie short From Bloomberg.com: AE Capital, a hedge fund run by a former atmospheric scientist, trimmed bets against the Australian dollar as it gauges shifts in the world’s two biggest economies. The Australian, Canadian and New Zeala

  2. He's lost £200m in a year - so has Britain's star hedge fund boss Crispin Odey lost his golden touch?[more]

    From Thisismoney.co.uk: ...Odey’s laid-back attitude gave no indication of the turmoil his flagship fund had put investors through. It had tumbled 20 per cent in May – a terrible performance given most of his rivals were in positive territory for the year. Odey’s fund had got into trouble after taki

  3. Comment - If you’re such a great investor, where’s your alpha?[more]

    From Mineweb.com: … They are few and far between. You likely know their names. There is a short list of those who have 1) outperformed; 2) over long periods of time, and; 3) manage substantial sums of money. It’s impressive if you are on that list, but discouraging if you seek to invest institutiona

  4. European fund managers 'dressing up’ track record to gloss on performance[more]

    Komfie Manalo, Opalesque Asia: A new study by global analytics firm Cerulli Associates has found that the problem of 'dressing up' track records by fund managers is getting worse. In its latest issue of The Cerulli Edge - Europe Edition,

  5. Why the equity short bias hedge fund underperformed in April[more]

    From Marketrealist.com: The Barclay Equity Short Bias Hedge Fund returned -0.83% in April 2016. However, on a year-to-date basis, the fund provided a return of 3.4% through April 30, 2016. The equity short bias strategy works best when the Market is in a downturn. From January 2016 to mid-Febr