Global investing to drive asset servicers’ revenues

Global assetsAsset servicing firms have seen more demand for their middle and back-office services from sovereign wealth funds in Asia and other large institutions turning more and more towards global investing and alternative asset classes. Asset servicers expect increased investment in the US from overseas funds, as well as interest in markets such as China, as investors look for diversification, says EY, a business consultancy that surveyed the asset servicing industry. Just over half the asset servicing firms in the EY survey expect North America to provide their largest revenue growth opportunity in the next five years, and Asia – which is operationally complex and regionally fragmented – the second largest. Seventy-seven per cent of respondents globally view hedge funds as the leading revenue growth area over the next five years. More generally, regulation and globalisation are seen as the largest sources of revenue for asset servicers in the years ahead. Other findings of EY’s New opportunities for asset servicers survey include:   •  73% of asset servicers see the impact of regulations as the greatest risk facing the asset servicing industry
  •  77% of asset servicers’ clients globally ask for solutions retlated to the Foreign Account Tax Compliance Act
  •  41% ask for solutions related to the Alternative Investment Fund Managers Directive (AIFMD)
  •  94% of asset servicers offer clients regulatory reporting, mainly for AIFMD
  •  81% offer depositary “lite” services to support alternative investors outside the European Union to sell funds in the EU Keith Caplan, principal, EY wealth & asset management, says: “Seismic shifts in the industry have resulted in greater demand for asset servicers’ offerings.” The most successful firms, he says, will move from offering individual services toward an integrated service model where global platforms offer scale. ©2015 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.