Top concerns of asset management CEOs | KPMG | US
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Top concerns of asset management CEOs

Top concerns of asset management CEOs

What keeps them up at night – and how they can get some rest


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Top concerns of asset management CEOs

The pace of change in all facets of business continues to accelerate. Confronted with rapid and unremitting technological change and global economic shifts, asset management CEOs need a new way of thinking and operating in order to achieve long-term success.

More than 100 CEOs, from a variety of asset management firms – including from hedge funds, mutual funds, real estate funds, alternative investments and wealth management – weighed in to discuss their top concerns in KPMG’s 2016 Global CEO Outlook Survey.

Their biggest fears centered on the following four areas:

1. Focusing on customer loyalty

A whopping 90 percent of asset management CEOs are concerned about customer loyalty. In addition, 92 percent are worried about how millennials—and their particular wants and needs—will impact business.

2. Remaining competitive

Remaining competitive was another major area of concern for asset management CEOs. The survey found that over 80 percent were worried about:

  • Their competitors’ ability to take business away from them
  • Keeping up with current technology
  • Staying on top of “what’s next” in their business

3. Managing risk

With regard to potential risk exposure, the survey found that the top four areas of concern for asset management CEOs were:

  • Market/treasury/interest rate risk
  • Regulatory risk
  • Cybersecurity risk
  • Operational risk

What’s more, nearly 90 percent were concerned that regulations will inhibit the growth of their firms.

4. Planning for innovation and disruption

Along with concerns about keeping pace with their customers’ changing needs, asset management CEOs are uneasy about their competitors’ ability to out-innovate them. What’s more, almost 70 percent worry that their business model may be disrupted by a company that is currently not even thought of as a competitor.

Nearly 85 percent of the CEOs acknowledge that they need to think strategically about the forces of disruption and innovation with regards to their firm’s future. And nearly three-quarters believe that their organization is capable of fostering a “culture of innovation”.

CEOs need to act now to develop and execute innovative strategies and be prepared to transform continuously in order to succeed in the face of these ever-growing and shifting challenges.

Read the article for more on what CEOs are doing about their concerns.

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