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According to a survey conducted by Northern Trust and Coalition Greenwich, European asset managers are displaying higher levels of optimism regarding asset under management (AUM) growth compared to their global counterparts.
The report, titled 'Evolving Asset Management Landscape: Only the Fittest Will Thrive,' revealed that 38% of European firms anticipate significant AUM growth in the coming year, while only 22% in North America and 21% in Asia hold similar expectations. Overall, 27% of the 140 respondents from various regions anticipate substantial growth in AUM.
In terms of AUM growth expectations, over half of the European firms surveyed (53%) foresee growth below 10%, with a mere 2% anticipating a decrease in AUM. Regional variations are evident in the strategies pursued, with Asian asset managers focusing on introducing new products, while their counterparts in the United States and Europe prioritize expanding sales efforts in new channels. Furthermore, approximately 42% of the respondents plan to increase the headcount of their sales teams.
The report also examined cost efficiency measures adopted by asset managers. The most popular option was the adoption of new technology, cited by 63% of the respondents, followed by renegotiating fees with vendors (37%). Staff-related changes, such as staff reductions or hiring more junior talent, were less favored. The rising costs have made outsourcing an increasingly likely strategy, with 40% of the respondents considering greater outsourcing.
The report emphasizes the importance for firms to assess their value chain and leverage new outsourcing models to support activities related to generating alpha. It highlights the optimism of European asset managers regarding AUM growth, surpassing their global peers. Various strategies, including technology adoption and outsourcing, are being pursued to drive growth and enhance cost efficiency in the evolving asset management landscape.
By fLEXI tEAM