Wed, Jul 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Asset managers plan to invest in product, distribution and technology in 2014

Monday, January 13, 2014
Opalesque Industry Update - According to the latest research from global analytics firm Cerulli Associates, asset managers and other financial services firms plan to invest in product, distribution, and technology in 2014.

"Most companies are operating on overdrive as they seek to expand and grow their businesses, while maintaining an eye on the bottom line," states Cindy Erickson Zarker, director at Cerulli.

The January 2014 issue of The Cerulli Edge - U.S. Asset Management Edition examines asset allocation and the addition of alternative products, institutional distribution, and how sales, sales support, and client service are working together to win mandates, and how coordinated marketing and product development efforts are maximizing impact and efficiency.

Cerulli's recent survey uncovered firms' focus on profitability as the primary change to their strategies in the next 12 months.

"Growth of assets in low-cost, passively managed strategies, combined with ongoing pressure from investors and fund boards to justify fees in actively managed strategies, require firms to secure new revenue sources," Zarker explains.

"On the other hand, managing costs is as fundamental to profit generation as producing revenue," Zarker continues. "There are meaningful areas where firms can derive cost savings to boost profits.”

But financial services firms also understand the need to spend money to make money. Supporting their 2014 firmwide efforts to innovate new products and services, expand distribution, and build brand awareness requires managers to invest in their businesses.

"Nearly 30% of survey respondents rated investment in technology as a desired outcome of planned organizational changes at their firms," Zarker adds.

Cerulli encourages firms to align distribution, product, and marketing activities to enable managers to maximize their limited resources.

www.cerulli.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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro

  5. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm