Asset managers in Switzerland expect to hire more people in the near term, according to research that paints an optimistic picture for the country’s funds industry.
Very few (5.4%) expect to cut staff and one in three (32.4%) expect to see an increase in headcount over the next three months.
The success of active management is a driver for this, according to the Swiss Asset Managers’ Survey produced by the country’s Asset Management Association (AMA).
This is because survey respondents rate the performance of actively managed investments during the crisis as better than that of passive products.
“Active management not only requires more staff, it is also more profitable,” stated the survey.
The survey also showed a marked improvement in the outlook for the asset management industry. One in three expect revenues and margins to grow and a further 51% see the outlook as stable.
Generally, the research found that the majority of asset managers in Switzerland were positive for the Swiss economy following the negative impact of the coronavirus pandemic.
Most of them also expect the country to not only escape any long-term damage from the pandemic but also emerge stronger in the long-term.
Optimism has returned in the second half of the year following a heavy pessimism that in the two opening quarters, according to AMA.
While the global economic downturn remains the main risk to the Swiss economy, 79% expect the recovery to be as strong or stronger than expected.
Furthermore, more than a third of respondents (36.8%) think Switzerland will see a long-term benefit from the crisis due to its low debt, attractive mix of sectors and generally high level of competitiveness.
An additional finding was that the majority of respondents saw the market turmoil caused by the coronavirus crisis as a catalyst for sustainable investment. Sustainably managed companies proved to be more resilient and better able to withstand the crisis than conventional funds, stated the survey citing the high inflows into sustainable funds as opposed to the outflows from non-sustainable ones.
The AMA survey canvassed 38 Swiss asset management institutions.
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