M&A activity set to grow
Merger and acquisition (M&A) activity is tipped to rise in 2013, with 10 per cent of fund managers planning to acquire another business in the next five years, a report suggests.
The forecast represents a marginal increase on the last five years, which saw 7 per cent of fund managers picking up a new venture, the State Street Corporation survey showed.
Regional expansion is also on the cards, with nearly one in five surveyed fund managers planning to expand into new regions by 2018, while 18 per cent plan to introduce managed accounts.
Contrary to previous reports, growth in the alternative sector is expected to continue, with fund managers looking to reassess fee structures and adopt more innovative approaches to remain competitive, George Sullivan, executive vice president and global head of State Street's Alternative Investment Solutions, said.
"Managers who remain innovative as they respond to demands from investors will be positioned for success in this new era where investors will look to employ alternatives more commonly than ever before," he said.
More than half of the 400 surveyed fund managers said they expected an increase in the use of hybrid alternative fund structures, which merge elements of traditional hedge fund and private equity models.
Recommended for you
The Federal Court has issued its verdict in ASIC's first greenwashing case against Vanguard Investments Australia regarding the use of ESG exclusionary screens.
Investment managers who plan to implement artificial intelligence in the next five years expect to see increased productivity, but views are mixed on whether it will boost revenue and assets under management.
A former corporate adviser has been sentenced in the Supreme Court of Western Australia for insider trading to realise a profit of more than $57,000.
Private markets expertise is sought-after for investment operations hires as allocations to alternative assets rise, according to a recruitment firm, but there is a gap between demand and supply.