According to PwC’s 19th Annual Global CEO Survey of 189 asset management CEOs in 39 countries 90% of the CEOs are confident about revenue growth in 2016 and this rises to 95% when considering growth prospects over the next three years.
Only 30% of global asset management CEOs said they expect the global economy to improve over the next 12 months.
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The survey found that 25% the CEOs expect the global economy to decline in 2016. Also, the majority believe that ‘responsibility’ will play a major role in defining their success in five years’ time.
According to the survey, 86% of asset management CEOs will prioritise long-term over short-term profitability, while 69% report on both financial and non-financial matters, while 68% expect corporate responsibility being core to everything they do.
The survey reveals that CEOs of asset managers see over-regulation, geopolitical uncertainty, volatile exchange rates and interest rate rises as threats to growth.
The study unveiled that 61% of the respondents consider shifting customer behaviours as a threat to growth, while 60% see cyber security as a threat to growth and 61% view stock market volatility as threat to growth.
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By GlobalData61% of asset management CEOs concerned about the speed of technological change view the speed of technological change as a threat, while 85% are examining how they use technology to improve stakeholder experience.
PwC’s survey shows that 64% of CEOs think that data and analytics are the most effective means for engaging customers and 58% of asset management CEOs are prioritising strategic alliances and joint ventures.
Furthermore, 65% of asset management CEOs are looking to hire more people in 2016 and 69% see a shortage of skills as a key issue.
The survey also indicated that 49% of CEOs think shared social values will be more important than competitive compensation (48%) when motivating top asset management talent in five years time, while 16% of CEOs have shifted their approach to diversity and inclusion.
PwC global asset and wealth management leader Barry Benjamin said: "Asset management is going through a time of fundamental change. In ten years’ time the sector is likely to be far bigger, but asset management companies will look very different from today."
PwC UK asset and wealth management leader Mark Pugh said: "Retirement patterns across the globe, especially in the UK with recent Pension Freedom reforms, are leading to opportunities as well as creating a wider set of stakeholders."
"As asset managers seek to fill product gaps and make the most of the opportunity to move centre stage in finance’s ecosystem, CEOs are aware they need to keep on top of the latest technological developments.
"With over half of global asset management CEOs already prioritising strategic alliances, the other half of the industry can ill afford to get left behind. The ongoing possibilities being opened up utilising and analysing data will be transformational for the asset management industry."
