August 28, 2009
Simplicity, safety and quality are now the goals of global investors for making their investment, according to a latest study by a United States asset management organization.
Investors or clients were looking for simplicity that was defined by transparency and liquidity of the investment's strategies being used, said Kirk West, Managing Director for Asia and Japan of Principal Global Investors (Singapore) Ltd., here on Tuesday.
Kirk West said that clients were also keen on safe investments that would provide capital protection and quality investments that was defined by consistent risk adjusted return.
The objective for the research study entitled "Future of Investment: the next move?" was to analyze the possible scenarios for the evolution of the global asset management industry and its existing models as a result of the global financial crisis.
West said that the majority of the surveyed 225 asset managers and pension funds from 30 countries had expected intensified regulatory pressures and fee compression for the next three years.
Principal Global Investors Chief Operation Officer Barbara McKenzie said that 45 percent of the respondents did not expect the worst to be over until the first half of next year.
"In the retail space, return of money will be more important than return on money as the clients' priorities of asset investment have changed," said McKenzie.
She said that the study also indicated that governments in all regions were keen to encourage private pension, while the business model associated with the segmentation scenario was gaining traction.
McKenzie highlighted that the four critical successful factors to further develop a vibrant asset management industry including investment capabilities, an alignment of interest between managers and clients, the service proposition, and business capabilities.