UK asset managers are more upbeat than the rest of their counterparts in financial services but optimism has dipped since the beginning of the year, a survey shows.
The CBI/ PwC financial services survey also found that although business volumes and overall profitability increased in the three months to June, they were expected to fall over the next quarter.
Employment numbers and investment in IT continue to be strong, as companies look to recruit and train specialist staff to help implement new business strategies and support growth.
It is accepted that emerging technologies such as artificial intelligence (AI) will bring benefits to the sector, but asset managers on the whole say they won’t be investing in these areas for another two to three years.
Mark Pugh, UK asset and wealth management at PwC, said: “Over the past year our survey has shown that the UK’s asset managers tend to underestimate how well they will perform. This shows there is significant underlying caution in the sector, driven by ongoing geopolitical and macroeconomic factors but companies continue to perform well regardless.”
He added: “Investment in technology is a priority for asset managers, with large amounts of money invested in updating and replacing systems. They appear to be behind the banks and insurers in embracing emerging technologies like artificial intelligence but are focused on fixing the basics in preparation for further transformation.”
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