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SGSS Market Survey: Are asset managers weathering the storm ?

09/07/2020

During the lockdown period between May and June 2020, SGSS conducted a survey with a representative panel of the European investment industry.

83 clients were asked a series of questions about the impact of the COVID 19 crisis on their business as well as on its consequences on the financial markets.

The results highlight 3 main key findings: 

1. An optimistic view of the chances of a rapid and sustained business recovery:
  • Indeed, for more than two thirds of the surveyed sample a growth of more than 2% in AuM and revenue is expected over the next two years (more than 5% revenue growth for nearly one-third). In this respect, active asset management regains its full appeal with chances of outperforming the indices for more than half of the respondents.
2. An acceleration of the trends already observed in the investment industry: 
  • Real assets remain the asset class with the best development opportunities for half of the panel.
  • Consolidation of the sector will continue to benefit the largest players, according to half of the respondents.
  • More than ever before, digitisation is the main key success factor for future developments for two thirds of the surveyed players.
  • Regulatory pressure will keep growing with topics related to liquidity (40%  of the panel) and business continuity or resilience to cyber risks (1/3 of the panel) most likely to continue to gain momentum.
  • Finally, outsourcing remains one of the main factors for improving operational efficiency (for half of the respondents), especially for dealing and middle office functions.
3. Interviewees are satisfied with the quality of service provided by their suppliers and their resilience during this crisis: 
  • 93% consider that the quality of service did not suffer from the exceptional operational measures implemented by their providers during the crisis.
  • This satisfaction leads to even higher expectations from their partners in terms of digital transformation and quality of service.

To discover the full questionnaire results, please click here.

To discover the full video, please click below.

Survey conducted from mid-May to mid-June 2020, on 83 asset managers in 10 different countries.
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