Investment managers in the United States are concerned about regulatory uncertainty, but indicate that revenue and hiring are on the rise, according to KPMG’s 2013 Investment Management Business Outlook Survey.
Regulatory uncertainty is a major threat for 57% of managers. And 55% expect that their biggest expense will stem from complying with new regulations over the next 12 months.
However, the survey reveals that investment managers are generally upbeat because 81% of them have seen revenue increase over the past year and 84% believe sales will continue rising over the next year.
When asked to identify the most promising region for asset growth, 57% named the U.S., while 28% chose the Asia and the Pacific region.
Executives are also optimistic about hiring. Forty-six percent say headcount has increased over the past year and 48% expect to add more staff over the next year.
“While economic, political and regulatory uncertainty remain issues for asset managers, they appear more focused on investing in their infrastructure, geographic expansion and growing their businesses,” says Jim Suglia, KPMG’s national advisory leader of investment management.
The survey polled more than 100 U.S. senior executives representing mutual funds, private equity funds, hedge funds, trusts, managed funds and other type of funds.
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