Asset management CEOs positive as they innovate to take centre ground - PwC’s 19th Annual Global CEO Survey

Published at 10:18 AM on 09 February 2016

  • 90% of global asset management CEOs are confident or very confident about revenue growth in 2016. This rises to 95% over the next three years

Just 30% of global asset management CEOs expect the global economy to improve over the next 12 months, according to PwC’s 19th Annual Global CEO Survey of 189 asset management CEOs in 39 countries.

25% of asset management CEOs expect the global economy to decline in 2016. This does not, however, seem to dent the confidence they have in the revenue growth they expect to see in their companies over the next 1 – 3 years.

Most asset management CEOs think ‘responsibility’ will play an important part in defining their success in five years’ time. Most significantly, 86% say they will prioritise long-term over short-term profitability. Furthermore, 69% say they will report on both financial and non-financial matters, while 68% anticipate corporate responsibility being core to everything they do.

Barry Benjamin, global asset and wealth management leader at PwC, commented:

“Asset management is going through a time of fundamental change. This is a time of great opportunity for growth, yet asset managers need to become more innovative, leverage technology, manage a wider range of risks and use digital communication intelligently if they are to remain competitive. In ten years’ time the sector is likely to be far bigger, but asset management companies will look very different from today.”

In addition to the global economy, CEOs of asset managers see over-regulation, geopolitical uncertainty, volatile exchange rates and interest rate rises as threats to growth.

  • 61% of asset management CEOs see shifting customer behaviours as a threat to growth
  • 60% view cyber security as a threat to growth
  • 61% see stock market volatility as threat to growth

Mark Pugh, UK asset and wealth management leader at PwC, commented:

“Asset managers are on the right side of a number of powerful trends. 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. However, there are grounds for wondering whether asset managers worry enough about some of these hazards. Are they anxious enough about cyber security, disruptive technology and changing consumer demands and expectations?”

Technology, data and analytics

  • 61% of asset management CEOs see the speed of technological change as a threat
  • 85% are examining how they use technology to improve stakeholder experience
  • 64% of CEOs believe that data and analytics are the most effective means for engaging customers
  • 58% of asset management CEOs are prioritising strategic alliances and joint ventures

Asset management CEOs are in line with the wider CEO community in their concern about the speed of technological change. The industry has an opportunity to learn from ecommerce firms who have harnessed “Big Data” successfully. By understanding how to use data, and the technology available to analyse it correctly, asset managers can address the changing expectations of both their stakeholders and their customers.

Mark Pugh, UK asset and wealth management leader at PwC, continued:

“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. For some, this means they are exploring the opportunity to keep track of, and potentially partner with, start-up and FinTech companies who have already built up strong expertise in this area. 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.”

People

  • 65% of asset management CEOs plan to hire more people in 2016
  • 69% see a shortage of skills as a key issue
  • 49% of CEOs believe that shared social values will be more important than competitive compensation (48%) when motivating top asset management talent in five years time
  • 16% of CEOs have changed their approach to diversity and inclusion

Mark Pugh, UK asset and wealth management leader at PwC, concluded:

“The asset management industry needs to do much more to address how they can tap in to the pools of talent available to them – in conjunction with a changed approach to diversity and inclusion. It is an obvious and necessary step to start to address the skill shortage.”

Ends.

Notes for editors.

  1. Mark Pugh is available for interviews. Please contact Ellie Raven on [email protected], +44 (0) 207 804 3663 or +44 (0) 7525 925 830.
  2. This report is a summary of the key findings in the asset management sector, based on a survey of 189 asset management CEOs in 39 countries. From Tuesday 9th February, the full report can be found here: pwc.to/1nqKTPT

 

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

© 2016 PwC. All rights reserved

Ends.


Twitter
LinkedIn
Facebook
Google+

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

« Insurance CEOs see technological change, new market entrants and over-regulation as main threats to growth - PwC’s 19th Annual Global CEO Survey | Homepage | PRA Solvency II Thematic Review Findings - PwC comments »

  • Contact us
  • +44 (0) 20 7213 1768

Specific and out of hours contacts