SimCorp, a leading provider of investment management solutions and services for the global financial services industry, today released a survey, which shows significant assets under management (AuM) and revenue growth expectations from investment managers in the next three years. The majority of the surveyed firms cited ‘provision of superior service’ and ‘product innovation’ as the main areas of focus for supporting growth.
The survey, titled ‘Unlocking Growth Through Innovation’, was conducted by Lindberg International and was supplemented by qualitative interviews by Citisoft.
In the survey, representatives from 83 investment management firms from Europe, North America and Asia Pacific were asked to project their annual growth rates in the next three years. Eighty four percent of large asset managers (more than 200 employees) expect annual revenue growth of 6% or more whereas 36% of the small asset managers (less than 200 employees) indicate the same. For annual AuM, 73% of the large firms and 56% of the smaller ones expect a growth of more than 6%.
The industry’s very positive sentiment towards growth over the next three years is surprising given that revenue and AuM growth across investment management stayed almost flat in 2015. Other highlights of the survey include:
Commenting on the findings of the survey, David Beveridge, Senior Product Marketing Manager at SimCorp said: “Stating that you want to grow by a certain percentage is one thing, figuring out how to best support your growth strategy is another. If these investment firms, in particular the large ones, are to realize their optimistic growth projections, they should take a critical look at their IT infrastructure, ensuring it enables them to operate efficiently, scale their business, and make informed investment decisions.”
Adding to this Steve Young, Managing Director, Citisoft EMEA, said: “A key conclusion from the qualitative part of this survey is that no matter which growth strategy an investment manager pursues, a consolidated and modern IT platform is essential. Whether growth is to be achieved through superior client service or product innovation, it is dependent on the ability to present timely, accurate investment data across the organization and to bring new products swiftly to market. Both require tight system integration front-to-back.”