Recent research and white papers

ASSET MANAGEMENT IN EUROPE – FACTS & FIGURES

The report ‘Asset Management in Europe - Facts & Figures’ from EFAMA gives a snapshot of the European asset management industry covering both the retail and institutional landscape. Its focus is on the value of assets professionally managed in Europe, rather than on the domiciliation of assets, and with a distinction made between investment fund and discretionary mandate assets. Among the findings are that asset management is a vital source of economic growth; however, it is concentrated in a limited number of countries. AUM in Europe recovered in 2009 to reach € 12.4 trillion at year-end. Institutional investors represent the largest client category of the European asset management industry and the dominant asset classes managed are bond and equity.

‘A new dawn for alternative investments – Navigating the challenges and opportunities of the AIFM Directive’
EFAMA, 49 pages, May 2011

HARNESSING THE FORCES OF CHANGE - SURVEY OF CLOSE TO 200 GLOBAL FINANCIAL SERVICES EXECUTIVES ON THE FUTURE OF THE INDUSTRY

Emerging from the global turmoil of the financial crisis, financial services companies face a multitude of external forces that continue to change the industry and impact individual companies. While the forces impacting the financial services industry appear random in nature, they fall into a set of common themes: compliance, capital, customers, and competition. These four forces of change are affecting the decisions made in all areas of business, from risk management to product development to operating models and strategy. Deloitte surveyed 175 financial services executives globally to get their feedback on how these forces are impacting their business, as well as to sound respondents’ views on where the financial services industry is headed.

‘Harnessing the forces of change’, Deloitte, 2011
Deloitte, 49 pages, May 2011

  

RISK MANAGEMENT FOR ASSET MANAGEMENT SURVEY 2011

The financial industry in Europe faces the greatest regulatory transformation ever. All industries, banking, capital markets and insurance, and the parties that support them, are affected simultaneously. The European Commission itself has singled out no fewer than 30 measures affecting the financial markets, where political agreement must be reached by the end of 2011. Asset managers, who were not per se the causes of the financial crisis of 2007-08, have nonetheless learned the lesson that efficient risk monitoring does not equate to effective risk management. Ernst & Young’s ‘Risk Management for Asset Management 2011 Survey 2011’ consolidated the views of 30+ heads of risk and chief risk officers at several leading asset managers in the UK and continental Europe on risk management, and from these interviews has developed a 12-point plan on how investment management organisations can optimise their risk management efforts going forward.

‘Risk Management for Asset Management Survey 2011’, Ernst & Young, 2011
Ernst & Young, 48 pages, May 2011

  

PwC - ASSET MANAGEMENT CEO SURVEY 2011

This report by PwC asks the CEOs of 31 large global asset management institutions for their thoughts on the state of the industry, tackling key challenges such as regulation and risk management, as well as their outlook on corporate and industry-wide growth. PwC’s 14th Annual Global CEO Survey found that CEOs are optimistic about growth. But after the worst economic crisis in 75 years, new strategies are needed to create growth. Emerging markets and industry innovations (new products) are seen as the primary drivers of growth.

‘CEOs on sustainable growth.’ 14th Annual Global CEO Survey, PwC, 2011
PwC, 10 pages, November 2010

  

BUILDING ON SUCCESS – STATE OF THE GLOBAL ASSET MANAGEMENT INDUSTRY 2011

This report is BCG’s ninth annual study of the global asset management industry. The assessment gives its take on the global asset management industry, with a comprehensive series of industry and market statistics to bolster its claims. Highlights include an increase of 8% in global AUM versus 2009, the impacts of regulation and tougher client demands. The report concludes that “Clearly, the global asset management landscape remains an enormously challenging one. But along with great challenges come great opportunities.”

‘Building on Success – Global Asset Management 2011, BCG, 2011
Boston Consulting Group, 32 pages, 2011

  

EVOLVING INVESTMENT MANAGEMENT REGULATION – MEETING THE CHALLENGE

KPMG assesses how the tidal wave of regulation is impacting the investment management industry and what companies must do to meet client demand, achieve their growth ambitions and remain profitable while complying with regulations. The publication addresses issues from systemic risk to investor protection, transparency, governance, and taxation, while also stressing that balancing the competing demands of various regulatory agencies is a huge challenge. Regional and industry segment viewpoints are offered.

‘Evolving Investment Management Regulation - meeting the challenge’, KPMG 2011
KPMG, 44 pages, 2011

  

GETTING UP TO SPEED – SOLVENCY II DATA AND SYSTEMS

Streamlined information technology systems and effective data management are core components of a Solvency II implementation and key to the success of any business-driven programme. It is clear that data quality issues continue to represent a major challenge and risk to many insurers’ ability to meet compliance deadlines. Ernst & Young outlines the issues at hand and makes recommendations on what steps must be taken and which investment management software system requirements must be met to comply with Solvency II, as well as with IFRS 4 Phase II.

‘Getting up to speed – Solvency II data and systems, Ernst & Young, 2011
Ernst & Young, 12 pages, 2011

  

FATCA AND THE FUNDS INDUSTRY: DEFINING THE PATH

Contrary to popular opinion, FATCA is not - or not primarily - an operational tax issue. There are, of course, significant operational issues, and the tight timescale before implementation means that many companies will have to work to define and develop the necessary operational measures to ensure FATCA compliance. These will require detailed engagement by a range of operational specialists and management functions. KPMG surveyed leading fund promoters in 12 countries to look at the key challenges the industry needs to address as a matter of urgency to prepare for FATCA implementations.

‘FATCA and the funds industry: Defining the path’, KPMG, 2011
KPMG, 28 pages, June 2011

  

FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) – OVERCOMING CHALLENGES RELATING TO OPERATIONAL IMPLEMENTATION

The wording of the FATCA has led to lots of heated debates in the banking, insurance and asset management sectors. Fundamental questions like “Which business units within our Group are in fact FFIs?” and “Can structured products also generate US source income?” were discussed. At the same time, considerable lobbying was directed at the USA’s IRS and Treasury Department, which is evidenced by the just under 80 “comment letters” received by these two institutions to date. The authors range from industry associations to large corporations and ambassadors of European countries in the USA. And it is difficult to overlook the fact that implementing the FATCA regulations is considered extremely expensive by all types of financial service providers. Accordingly, there was a huge outcry in the financial sector demanding specific and practical instructions on what to do.

‘Foreign Account Tax Compliance Act (FATCA) - Overcoming challenges relating to operational implementation’, Ernst & Young, 2011
Ernst & Young, 24 pages, 2011

  

ALTERNATIVE FUNDS – MEET DODD-FRANK AND THE EU DIRECTIVE

The global financial crisis has left its mark in both the USA and the European Union (EU), with major legislation passed and in process of implementation. In the USA, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), represents the most comprehensive overhaul of US financial regulation in decades. The act applies to many areas of the financial services industry. This report focuses on regulation that affects hedge funds and private equity funds – also collectively referred to here as private or alternative funds. The EU’s Directive on Alternative Investment Fund Managers (AIFMD) is also discussed in this report.

‘Alternative Funds - Meet Dodd-Frank and the EU Directive’, Aite Group 2011
Aite Group, 19 pages, March 2011

 

New reports published and information considered worth publishing can be submitted for review to: Co-Editor Mette Trier, mette.trier@simcorp.com