European asset managers are more optimistic about asset under management (AUM) growth compared to global peers, according to a survey by Northern Trust and Coalition Greenwich.
The ‘Evolving Asset Management Landscape: Only the Fittest Will Thrive‘ report found that 38% of European firms expect significant AUM growth next year, compared to 22% in North America and 21% in Asia. Overall, 27% of the 140 respondents anticipate significant growth.
Over half of European firms (53%) expect AUM growth below 10%, while only 2% foresee a decrease.
Strategies differ by region, with Asian managers focusing on new products, while US and European managers prioritise expanding sales efforts in new channels.
Around 42% of respondents plan to increase their sales team headcounts.
The report also examined cost efficiency measures. Adopting new technology is the most popular option, cited by 63% of respondents, followed by renegotiating fees with vendors (37%). Staff-related changes were less favoured, like staff reductions or hiring more junior talent.
Outsourcing is an increasingly likely strategy due to rising costs, with 40% of respondents considering greater outsourcing.
The report emphasises the need for firms to assess their value chain and leverage new outsourcing models to support alpha generation activities.
The survey shows European asset managers’ optimism in AUM growth surpassing their global peers. Different strategies, including technology adoption and outsourcing, are being pursued to drive growth and enhance cost efficiency in the evolving asset management landscape.
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