Money managers need to increase their marketing efforts and boost innovation in both product development and marketing, enhance risk management systems and develop a presence in new markets such as in Asia and the Middle East if they are to grow amid increasing competition and an unsteady U.S. economy, according to a recent report from Boston Consulting Group.
“The subprime crisis may have created some opportunities for timely and reasonably priced acquisitions, but asset managers will still need to be extremely selective in evaluating potential candidates,” said Andy Maguire, a senior partner and lead author of the report, in a news release.
The value of professionally managed assets rose 13% globally to $53.4 trillion in 2006, according to the report. The U.S. market grew 15.2% to $25.7 trillion; Europe grew 10.9% to e15.5 trillion ($22.6 trillion); and the Asia-Pacific region grew 10.2% to $6.5 trillion.
