Canadian money managers see increased client expectations as the greatest challenge they face in the next year, a survey from RBC Investor & Treasury Services shows.
Among the 89 managers surveyed in the second quarter, 15% cited increased client expectations as the top challenge facing managers. The second-highest challenge noted by 12% of surveyed managers is increased regulation, according to a news release on the survey results.
Compared with last year's survey, client expectations rose to the most-cited challenge from the eighth most-cited challenge.
The news release said managers cited more focus on performance-based fees in actively managed strategies, the increasing popularity of environmental, social and governance issues, corporate engagement and socially responsible investing as some of the drivers of an increased focus on client expectations.
"The global asset and wealth management sectors are experiencing a number of significant shifts as the business environment continues to evolve, and our survey shows that Canadian managers are not exempt from this reality," said David Linds, managing director and head of asset servicing Canada, in the news release. "Managers must strive to be flexible and responsive to their clients' evolving needs, which means providing and leveraging technology, products and solutions in new and innovative ways to meet increased investor expectations."
Despite increasing challenges, 23% of survey respondents said they are extremely confident in their ability to respond to the changing business environment, up from 15% in last year's survey.
RBC spokeswoman Briana D'Archi did not return a phone call seeking further information.