Copying and distributing are prohibited without permission of the publisher
Managers bullish on future revenues
18 February 2014
New PwC report shows asset management CEOs are confident about recovery in revenues and global economy
A staggering 97% of asset management CEOs are confident that
revenues will rise over the next three years, according to
PwC's annual survey of 123 CEOs in 37 countries.
More than half said the global economy would improve during the
next 12 months, compared with 19% last year. As a result, some
58% of CEOs said they were planning to hire more staff this
Paula Smith, UK asset management leader at PwC,
said: "Asset management CEOs are confident about their
prospects and getting more so as equity markets have rallied
and fundamental shifts in the financial ecosystem increase
demands for their investment services. What's more, their
optimism is taking root as they actively invest to stimulate
future growth. Their expansion plans include mergers and
acquisitions, investment in technology and hiring more people.
They're voting with their pocket books."
Yet optimism was shadowed by uncertainty over regulatory
changes and the response of governments to fiscal deficits and
debt burdens. Such concerns pose the greatest challenge to
managers where eight in ten CEOs said operating costs were
increasing, while 50% said their ability to innovate is held
back by regulation.
Smith said: "Cost reduction is still important but it's
becoming less of a priority as asset management CEOs make plans
for growth. It's interesting to note that they see the best
opportunities for growth in the US and Western Europe. But
regulation clearly remains a strong headwind."
"As they plan for the future, asset management CEOs are firmly
in expansion mode. They're investing for both organic and
inorganic growth - pursuing the former through hiring more
people and increasing their technology spend, and the latter
through seeking out mergers, acquisitions and joint