UK fund management firms are cautiously optimistic, despite ongoing political turbulence in the country, a report shows.
Levels of optimism in the industry are actually higher compared to the previous quarter, according to the latest CBI/PwC financial services survey.
“While it’s true to say that there are significant challenges for the sector, not least from cost pressures and increased competition, the latest results suggest a cautious optimism,” said Elizabeth Stone, asset and wealth management leader at PwC UK.
“Firms are reporting confidence in their operational resilience which may be due to the sectors’ Brexit planning meaning an imminent Brexit will have less of an impact than in other areas of financial services.”
The survey also found that firms are turning their focus to cutting costs and reducing fixed overheads – as well as grappling with increased competition and new regulations.
“Pressure on fees and demonstrating value for money will continue to test the sector. To date sector infrastructure models remain largely unchanged and have been less impacted by disruption when compared with other financial sectors,” Stone said.
“As a result, we are yet to see the substantive flow on of cost savings and efficiencies that could stem from disruption. To counterbalance this, firms must prioritise articulating their strategy and value proposition, and look to invest more in technology, and upskilling their people.”
The survey was conducted between May 14 and June 17, with 79 firms replying. PwC, headquartered in London, is a multinational professional services network.
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