Asset Management Insights

Asset Management Insights

Asset Management Insights is our new flagship publication for communicating key asset management issues. Replacing our quarterly Asset Management News publication, our specialists will use this platform to keep you informed about our latest thinking on critical topics such as regulation, risk management, people and governance.

 

07 Apr 2014

Asset management’s game changers for growth

Asset management is poised for significant expansion over the rest of the decade, according to the research undertaken as part of our newly released report, Asset Management 2020: A brave new world, which predicts that global assets under management (AuM) will rise to around $101.7 trillion by 2020, from a 2012 total of $63.9 trillion.

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07 Apr 2014

How mega trends will change real estate investment by 2020

Rapid urbanisation and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years, as explained in our newly released report: Real Estate 2020: Building the future. At the same time as the industry's opportunities grow, so too will assets invested into the sector.

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26 Feb 2014

Asset management CEOs are investing for growth

Asset management CEOs are preparing for growth. They’re becoming more confident, taking heart from both rising equity markets and the growing demand for their services.

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29 Jan 2014

Pressure builds for private equity outsourcing

Against a backdrop of extensive regulatory and market change, many private equity firms are under mounting pressure to deliver greater transparency, better reporting and tighter accounting controls.

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29 Jan 2014

QDLP: China’s new market for hedge fund managers

At long last, the Qualified Domestic Limited Partnership (QDLP) program in Shanghai has been implemented. The first batch of six hedge fund managers has been approved to participate into the program. They have started setting up the wholly foreign-owned fund management companies (“Onshore FMC”), as well as beginning RMB fund raising.

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14 Nov 2013

US retail alternatives: Ten significant touch points for success

A world away from their historic market of institutional and high-net-worth investors, a new growth opportunity is opening up for US alternative investment managers. Retail investors are beginning to place their savings in alternative mutual funds and, if the trend continues, they’re likely to fuel an increasingly large proportion of hedge and private equity managers’ profit growth.

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24 Oct 2013

Real estate links sustainability and shareholder value

Real estate investors are getting greener and they’re keen to show it. Recognising that environmental, social and governance performance can boost buildings’ rents and values ― optimising the balance between risk and return ― growing numbers of real estate companies and fund managers are incorporating sustainability practices into day-to-day decision making and due diligence.

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03 Sep 2013

Avoiding fund governance’s mounting risks

Effective fund governance is becoming increasingly important. Following the financial crisis, regulators and investors focused on the conflict of interest between an asset management company’s desire to maximise its own profits, and its duty to maximise fund returns.

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07 Aug 2013

Opportunities in ETFs’ next phase of growth and innovation

As ETFs mark the 20th anniversary of their 1993 invention, their growth story appears to be only beginning. Greater investor appreciation of their simplicity and cost effectiveness, as well as expanding global markets and distribution channels, is fuelling further demand for ETFs.

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19 Jul 2013

Wealth management’s four areas of transformation

Wealth managers are in a period of transformation. Slow growth, new regulation and short-term margin pressure are causing them to make fundamental changes to their businesses, ranging from how they approach clients to the efficiency of operating models.

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02 Jul 2013

Time for asset managers to embrace social media

While social media use explodes, asset managers are proving slow to follow their customers onto these networks. Already Facebook, LinkedIn, Twitter and YouTube are influencing savers’ investing decisions. In future, social media may lead to fundamental changes in investment practice, and how investors interact with their asset managers. Yet many asset managers are taking a ‘wait-and-see approach’.

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02 Jul 2013

Hong Kong’s new route into China’s fast-growing fund market

China’s gradual opening of its market to the freer flow of capital will provide a massive boon to fund managers globally.

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07 Jun 2013

Matching merger enthusiasm to reality

Asset managers have a strong urge to do deals but this isn’t feeding through to actual transactions. For fast-expanding Asian and Latin American managers, as well as their counterparts in Europe and the US, the rationale for strategic deals is as strong as ever before.

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04 Jun 2013

Three ways to gain from implementing AIFMD efficiently

With the AIFMD requiring compliance from 22 July 2013 or 2014(depending on the EU member state in question), fund managers are looking into what they need to do, given the time it may take to embed changes in their businesses. In order to turn obligation into opportunity, even at this late stage, preparing for the Directive efficiently will give managers the flexibility to comply in the way that will bring greatest benefit to their business.

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11 Mar 2013

Final FATCA regulations give asset managers some relief

When the long-awaited final Foreign Account Tax Compliant Act (FATCA) regulations arrived in late January, they provided welcome clarity for the asset management industry. In the final analysis, a number of changes were made in response to industry concerns that should be helpful as implementation of FATCA proceeds.

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07 Mar 2013

Real estate optimism grows for 2013

After a Darwinian struggle for survival by many European and US real estate companies in the past five years, the prospects are getting brighter, according to the Emerging Trends in Real Estate® surveys recently published by PwC and the Urban Land Institute (ULI). In Asia, where prospects have been more buoyant in last few years, survey respondents were also positive about 2013.

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26 Feb 2013

Preparing for AIFMD’s strategic challenges and opportunities

As the July 2013 deadline for the AIFMD’s implementation approaches, its far-reaching implications are becoming clearer. What might initially have appeared to be a testing exercise in regulatory compliance and reporting will evidently have a significant effect on the alternative investment sector. While the Directive will undoubtedly open up new possibilities for raising capital in Europe, it may also change the shape of the alternative investment sector.

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13 Feb 2013

The Foreign Account Tax Compliance Act (FATCA): Webcast

We’ll discuss key considerations and notable changes from the proposed regulations; impact on asset management companies, hedge funds, real estate funds, management and portfolio companies; important considerations for investor onboarding; and the role of third party service providers.

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11 Jan 2013

Top 10 impacts of regulation on asset managers

The wave of new financial services regulations is causing deep changes in the asset management industry, heralding a period of transformation that will threaten some business models’ profitability.

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27 Nov 2012

Nine new rules of IT strategy

Seeking to sharpen their competitive edge, many asset management companies are refining their business models. They’re placing greater emphasis on investor-facing functions such as marketing and distribution, while developing products for new investor needs. Yet, all too often, IT struggles to support these initiatives – holding back changes that are critical for future business success.

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13 Nov 2012

EMIR’s strategic implications for European boutiques

As Europe’s asset managers prepare for the new over-the-counter (OTC) derivatives regulations, due to be introduced from 1 January 2013, they’re realising that the new regime’s implications go far beyond compliance. By introducing the safety buffer of a central counterparty, the European Market Infrastructure Regulation (EMIR) is driving up costs and might force some boutique managers to look again at their investment propositions.

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22 Oct 2012

Safeguarding asset managers against mounting cyber security threats

When asked what was the asset management industry’s greatest unappreciated threat, a senior US hedge fund executive recently told one of our partners that it was cyber criminals hacking into computer systems. Asset managers and their service providers didn’t have sufficient security in place, he said, and this could result in significant financial losses and seriously damage the organisation’s reputation.

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10 Oct 2012

UK’s Kay Review advocates long-term, activist model for asset managers

When the UK government responds to the Kay Review of UK Equity Markets and Long-Term Decision Making later this autumn, it will focus the minds of asset managers everywhere on fundamental strategic issues. Kay’s central recommendation is that managers should take a longer-term investment approach, learning from the likes of legendary investor Warren Buffett.

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10 Oct 2012

Regulation in South Africa may slow asset manager growth

In South Africa’s developing asset management industry, new regulations threaten to put a brake on revenue growth, according to local asset managers. While the country’s managers are growing far faster than those in developed markets, a raft of regulatory changes associated largely with local pension fund reforms and enhanced investor protection threaten to stifle the pace of expansion.

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06 Sep 2012

Building AIFMD risk structures in a Euro storm

In the run up to the introduction of the Alternative Investment Fund Manager Directive (AIFMD) over the next year, Europe’s hedge, private equity and real estate managers will have to start revolutionising their risk management.

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08 Aug 2012

India’s Budget potentially reduces investment returns

In its recent Budget, India introduced two major changes to its domestic tax law that look likely to have a significant impact on foreign investors investing into India.

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06 Aug 2012

Becoming a “trusted hedge fund advisor”

At a time when trust is a topic of debate in the financial sector, hedge fund managers have been taking great strides towards improving investor confidence. In doing so, they’ve been moving towards gaining the status of ‘trusted hedge fund advisor’.

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31 Jul 2012

Institutional investors’ changing needs

When selecting an asset management firm, institutional investors no longer make investment performance the primary factor. In fact, they rank it equally highly with expertise and risk transparency. So if asset managers are to forge long-lasting relationships with their institutional clients, they might need to refine their objectives to give a greater weighting to factors beyond performance.

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11 Jul 2012

Alternatives managers plan for succession

In a world of slow economic growth and subdued financial markets, founders of both hedge fund and private equity companies are adjusting their ambitions.

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20 Jun 2012

Top issues facing asset managers

Asset managers face nine key challenges at a time of unprecedented industry change.

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22 May 2012

Engineering a path to profitable growth

By reviewing their operating models and reorganising their businesses, asset managers will overcome margin pressure.

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30 Apr 2012

Asset Management and Solvency II: Turning the shake up to your advantage

How can asset managers and asset servicers use Solvency II as an opportunity to attract more business from insurers?

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03 Apr 2012

Anticipating asset manager M&A

All the signs point to a recovery in M&A in 2012, following 2011’s low levels of activity.

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03 Apr 2012

Private equity leverages responsibility

A PwC survey of US and European private equity firms found that almost all believed that responsible investment creates value, although their approach is still evolving.

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21 Mar 2012

Distributing funds in Asia’s growth market

Asia has significant potential for growth, although geographical diversity and regulatory issues pose challenges.

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29 Feb 2012

The Volcker Rule Proposal and asset management firms

The breadth of the proposed prohibitions and their complexity has caused industry consternation. After significant concerns were expressed in the comment period that ended on 13 February 2012, US regulators are considering their next steps, and a revised rule or proposal seems likely.

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15 Feb 2012

How do the proposed FATCA regulations impact Asset Managers?

PwC Observation: It has been suggested that the proposed regulations have either delayed FATCA or that the efforts around compliance for the asset management industry have been substantially mitigated. It seems in fact there is still a substantial amount of work to be done by these asset managers to even qualify for deemed-compliant FFI status. Given that the regulations have provided details on how these rules may ultimately work, asset managers should have sufficient direction to begin assessing and developing a plan with their third-party service providers to implement the requirements of FATCA into their business processes and procedures.

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10 Feb 2012

Chile simplifies fund regulation

A new bill being debated by Chile’s Congress would simplify regulation, so enhancing the country’s attractions as an asset management centre.

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06 Feb 2012

Guarding against a euro crisis

While the probability of a eurozone break-up remains small, asset managers should develop contingency plans to guard against the difficulties that would follow.

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01 Feb 2012

ETFs' new operating model needs

ETFs are becoming more popular, yet some in the industry do not yet have the specialised, cost-effective operating models they need.

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17 Dec 2011

Private equity’s ‘fair value’ judgment

Valuing private equity investments in volatile markets is an inexact science that requires sound judgement.

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15 Dec 2011

AIFMD: ESMA publishes ‘Final Advice’

In November 2011, the European Securities and Markets Authority (ESMA) published its final advice to the European Commission (EC) on possible implementing measures under the Alternative Investment Fund Managers Directive (AIFMD). The alternative fund industry now has a clearer picture of what AIFMD will mean for it.

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13 Dec 2011

Attracting the best investment professionals

At a time of volatile markets and mounting regulation, methods for attracting the best investment professionals involve more than just remuneration, and vary from one country to another.

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07 Nov 2011

China's fast-emerging investment opportunities

As the Chinese Government steps up measures to internationalise the renminbi, it is creating opportunities for asset managers, willing to move early.

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25 Oct 2011

Pressure builds for asset manager M&A

In uncertain markets, asset managers are holding back from making acquisitions. Yet the strategic rationale is strong and acquisition prices are falling.

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25 Oct 2011

Why a joined-up approach tackles regulation's fundamental challenges

This article describes why a holistic approach to the regulatory changes occurring worldwide enables you to arrive at strategic and efficient solutions.

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