4 “Must Have” Capabilities in 2011 for an Asset Manager
What will it take to have an exceptional asset management business in 2011? A consensus on 4 “must-have” capabilities has emerged as well as the likely winners.
Introduction:
Within the first few weeks of 2011, there is an emerging consensus on the asset managers that are likely to have the strongest business in 2011. Publications from Barron’s, Morningstar and Wells Fargo have all come out in support of the asset management industry as an area that is likely to experience growth in 2011. However, any growth is not likely to lift all the boats in this pond.
As 2010 came to an end and January 2011 kicked off, investors have begun to re-risk their portfolios, as evidenced by the fund inflows to equities and more particularly emerging market funds. While increasing equity valuations is generally a good thing for the asset management industry, this time around, clients are more demanding.
Asset managers will likely have to respond by possessing each of the 4 capabilities below to succeed in 2011:
- Strong focus on equities
- Exposure to emerging markets and alternative investments
- Possess a geographically disbursed client base
- Ability to provide ETFs
Who are the likely winners in 2011?
Based on an analysis of the research , Morningstar, Barron’s and Wells Fargo generally agree the firms that possess each of the 4 “must have” capabilities:
- Morningstar chooses Blackrock, Franklin Resources and Invesco:
“Will Investors Flock to Equities in 2011?”
- Barron’s picks Franklin Resources and Affiliated Managers Group:
- Wells Fargo thinks Blackrock is positioned the best:
“Best positioned asset manager in 2011 is Blackrock”
