Almost all global asset management chief executives are either confident or very confident about revenue growth in 2016, despite concerns about the world economy.
According to PWC’s annual survey of 189 asset management chief executives in 39 countries, just 30 per cent expect the global economy to improve over the next 12 months.
This has the knock-on effect that 86 per cent said they would prioritise long-term over short-term profitability.
Mark Pugh, UK asset and wealth management leader at PwC, explained asset managers are on the right side of a number of powerful trends.
He said: “Retirement patterns across the globe, especially in the UK with recent pension freedom reforms, are leading to opportunities as well as creating a wider set of stakeholders.
“However, there are grounds for wondering whether asset managers worry enough about some of these hazards.
“Are they anxious enough about cyber security, disruptive technology and changing consumer demands and expectations?”
According to the survey, 61 per cent of asset management chief executives see the speed of technological change as a threat to growth, roughly the same percentage that cited cyber security and market volatility.
Mr Pugh warned chief executives must keep on top of the latest technological developments.
“For some, this means they are exploring the opportunity to keep track of, and potentially partner with, start-up and FinTech companies who have already built up strong expertise in this area.”
