BRIDGING THE BUYSIDE GAP.
Asset managers are struggling to keep pace with their more demanding client base and need to broaden their skillset, according to a global survey of 300 senior executives at asset management firms conducted by State Street.
The report exposed a gap between the needs of their end clients and asset managers’ expertise particularly in areas such as portfolio construction, the ability to assess and monitor risks across portfolios and knowledge of increasingly complex compliance and regulatory requirements.
One reason behind these skills shortages is the increasing popularity of multi-asset solutions which encompass a diverse range of asset classes from real estate and commodities to hedge funds and infrastructure. They have gained traction since the financial crisis and the low interest rate environment.
The study found that two-thirds (67%) of asset managers surveyed identified this type of investment as most likely to drive growth over the next three years. However, 74% of respondents agreed that few asset managers have the capabilities required to thrive in a multi-asset investment world.
Another factor relates to asset managers casting their investment nets wider at new markets and geographies to generate returns.
This has required them to not only navigate the regulatory demands of different jurisdictions but also identify the right product and distribution channels for each new market and deliver the requisite levels of transparency to both regulators and investors.
“To address these skills shortages, asset managers plan to augment their expertise through recruitment, while also developing their existing employees’ capabilities,” said Joerg Ambrosius (above), head of asset manager solutions for Europe, Middle East and Africa, State Street.
“Over the next three years, more than half the asset managers in our survey (54%) plan to bring in new talent, while two-thirds expect to invest in training for their current teams.”
© BestExecution 2014