Controlling costs in volatile markets is the top concern among asset managers, followed closely by a focus on risk and compliance issues and support for expansion into markets beyond their home country, said results of a survey sponsored by Northern Trust.
Most (87%) of the 300 global asset management firms surveyed by Worldwide Business Research said controlling costs will be their key strategic priority for the next two years. Nearly as many (86%) also plan to focus on risk, compliance and resiliency.
Meanwhile, 85% of respondents said supporting expansion into new markets was a top priority.
"Driving profitable growth beyond 2020 will require more than finding new streams of revenue or reducing costs," said Ryan Burns, Northern Trust's head of global fund services, North America, in a news release announcing the survey results. "The most successful asset managers are rethinking their operating models from the perspective of their whole office, seeking holistic changes such as outsourcing that can help them grow their businesses."
Money managers are looking at different outsourcing options to push efficient growth and improve upon essential processes, according to the survey results.
For example, 85% of respondents have either already outsourced their trading desk or are interested in doing so in the future. Nearly half (45%) are considering outsourcing data management in the next two years, while roughly one-third are considering outsourcing foreign exchange and middle-office functions.
The survey also revealed that 64% of respondents plan to achieve their strategic priorities by leveraging new technologies. However, respondents said investing in next-generation technology such as artificial intelligence, machine learning and cloud-based data management solutions can be prohibitively expensive when managers are looking to control their expenses.
