Investment managers are far more optimistic about growth prospects than they were when the current market recovery began three years ago, a survey has found, and are focused on revenue expansion rather than cost-cutting.
The 2006 Global Investment Management Survey released Thursday by PricewaterhouseCoopers LLP said that, despite this optimism, investment managers face enormous challenges in expanding distribution, attracting specialized talent, and managing risk. They are chasing performance through product diversification, the study added.
Fifty-five percent of global investment company chief executive officers in the survey expected revenue growth of 20% or more in the next three years. Their companies are less bullish, with 35% forecasting revenue growth of 20% but 65% predicting more modest growth of 5% to 19% in the next three years.
Facing competition from new players and products, investment companies are focused on expanding their breadth of product offerings.
Increasing the distribution of existing products in existing markets was cited as a top concern by more than 53% of the U.S. companies. About 47% rated their own organizations below their competitors' in managing new markets, and 35% think they do not do as well as competitors in terms of product breadth or distribution.
