This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Manning The Frontlines: Global Asset Managers Rewrite The Rules Of Engagement

More than three quarters of asset managers say they are embarking on a fundamental shift in their overall business strategy in response to changing client demands in the areas of innovation, distribution and front office solutions, a report by State Street Corporation (NYSE: STT) has found. The report titled, “Frontline Revolution: The New Battleground for Asset Managers,” highlights that although asset managers are overwhelmingly positive about the future, true success will be defined through investing in new capabilities, long-term investments and the right mix of talent, transformation and tools.

“Emerging from the financial crisis, asset managers have growth in their crosshairs,” said Joseph Antonellis, vice chairman at State Street. “Although nearly all of the managers surveyed are optimistic about business growth over the next twelve months, few believe they are well equipped to provide the solutions their clients need. To close the capability gap, the top areas of investment over the next three years will include risk analytics, performance analytics and data integration.”

Defending existing borders, but pushing new boundaries:

  • 48 percent of survey respondents believe developing new products for their existing country markets offers the greatest growth opportunity followed by growing market share of their existing products within existing country markets (24 percent) and bringing in existing products to new country markets (20 percent)
  • 42 percent will target growth from new client segments
  • 32 percent expect to expand number of distribution channels
  • 47 percent plan to expand into new markets over the next three years, and of these, 60 percent are focused on opportunities in Asia Pacific

Barriers to expansion:

  • 85 percent say regulatory barriers are the top challenge when expanding into new markets
  • 55 percent say distribution challenges deter them from expanding into otherwise attractive new markets
  • 67 percent of respondents note that multi-asset solutions represent a major source of growth for their business over the next three years. This reflects the shift toward more outcome-based investment solutions for investors. However, 74 percent believe that few managers are equipped to excel in providing these solutions.

“More than ninety percent of respondents agreed that those managers offering the greatest degree of transparency will have the upper hand in attracting new assets,” continued Antonellis. “Asset managers can have a clearer line of sight by preparing an arsenal of tools and capabilities to thrive in this more specialized and trying environment. That comes with transforming single asset products into fully serviced solutions.”

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs