1

UNLOCKING GROWTH THROUGH INNOVATIONHOW A NEW GROWTH PARADIGM AMONG ASSET MANAGERS CHALLENGES THEM TO RETHINK THEIR OPERATING MODEL AND TECHNOLOGY INFRASTRUCTURE

ACHIEVING GROWTH IN TURBULENT TIMES

CHAPTER ONE

Bad companies are destroyed by crisis. Good companies survive them. Great companies are improved by them

“ANDY GROVEFormer CEO of Intel

3Chapter one | Achieving growth in turbulent times

AS THE GOING GETS TOUGH, THE TOUGH GET GROWING

In the spring of 2016, we asked the question “why are we talking about growth?” given that there was a general state of turmoil in the markets. Since then, this turmoil has only been exacerbated by assorted terrorist attacks, an attempted military coup in Turkey, and most notably, the UK electorate’s unex-pected decision to secede from the European Union.

So how can buy-side investment managers expect to achieve growth in such a volatile, uncertain environment? Our previous white paper, Pursuing Growth in Uncertain Times, collected and reviewed the opinions and projections of analysts, consultants and other industry pundits and the consensus was clear: while short-term growth will be challenging, medium- to long-term growth (3+ years) is inevitable.

While the experts predict that there will be growth, there is no clear means identified as to how this growth will be achieved.In order to gauge the pulse of the buy-side investment management community, we ran a global survey seekinganswers to some key questions:

• What are your growth plans?• What is the state of your “growth readiness”?• What are the key barriers to growth you are experiencing? The most surprising feedback is that two long-held core growth strategies, globalization and M&A, have fallen by the wayside. In their place is product and service innovation – that is, supporting a new type of product or service that the company has not offered to its clients before.

4Chapter one | Achieving growth in turbulent times

WHITE PAPER

Despite recent market turmoil, growth is back on the agenda. Learn about the key drivers of and inhibitors to growth and examine how best to take advantage from an infrastructure perspective.

ARE YOU PURSUING GROWTH IN UNCERTAIN TIMES?

LEARN MORE

In order to support provision of new products and services (or whatever growth strategies you intend to pursue), it is imperative that you have the infrastructure in place to support this. Significant advances in digital technology, data management and so on, make it possible for you to enhance the offerings made to your clients. However, this is a “deeds not words” situation. In this white paper, we have surveyed more than 80 senior executives from the asset management industry and asked them how they intend to grow and how ready they are to capture growth.

The situation regarding “Brexit” is unclear and will likely remain so for the foreseeable future. It would appear at the moment that any departure from the European Union will be taken over a reasonably long period of time. We will not know what the likely outcome of any new arrangements is for some time.

From an asset management point of view it is hard to see how this impacts long-term growth factors. Many global firms are looking at the shape and organization of their operating models and considering mitigating any risks presented by Brexit by having a more diverse geographical model with more functional capability in multiple European locations. As a result, the question Brexit has raised is likely to be more about where people are located rather than reducing headcount.

In terms of the study, the long-term effects of Brexit are limited. We do expect to see a short-term slowdown in projects. This is particularly likely in the UK as firms decide on the possible impact of Brexit on their business model, and for international firms, if the UK remains the best place to base these projects. Whilst the long-term impact for the UK industry is unclear, the long-term indicators are unchanged. As supported by the survey findings, firms need to evolve and invest for the future. Perhaps the key difference is, those with a significant UK presence will need to consider increasing their European operations. Conversely there will be a small number of European firms who will view the UK as a strategic market and these will want to consider ensuring an appropriate UK presence.

BRIEF OVERVIEW OF BREXIT (AND ITS IMPACT) FROM CITISOFT

5

THE GOOD, THE BAD AND THE UGLY

CHAPTER TWO

GROWTH? WHAT GROWTH?

Through 2020, PwC predicts asset under management (AuM) growth to average 6% per year.1 This is in line with the 5% AuM compound annual growth rates (CAGR) observed by Boston Consulting Group from 2008 to 2014 (note that in 2015 global AuM rose by only 1% versus 2014 levels).2

This finding is corroborated by an assessment from Deloitte subsidiary Casey Quirk, which indicated that 2015 AuM was 2.4% less than in 2014.3 While not strictly pertinent to the institutional buy-side, a 2016 study by UK-based Scorpio Partners found that private wealth AuM dropped by 1% in 2015 versus 2014 levels.4 One year’s data is not yet a trend but the warning signs of slower growth are there.

With net flows at constant levels, the continuous appreciation of existing assets seen since the global financial crisis is no longer enough to sustain even modest growth rates. This indicates that the recent volatility in the market has now manifested itself with sharp negative impacts on not only AuM but revenues and profits as well.

For the institutional asset management segment, the situation is even more dire. BCG reports that net flow in 2015 for retail AuM (40% of all AuM) were 3.3% of 2014 AuM while the institutional segment only grew net flows by 0.3%.5 In summary, most new flows are going to private wealth and the retail segment while the institutional segment is struggling.

There are a number of reasons for the difficulties faced by the institutional segment, many of which were documented in our previous white paper. A changing demographic (more pensioners), rising affluence in emerging markets, and the digital-minded millennials entering the market all play a role. With institutional asset managers estimated to manage less than 40% of investable AuM, there are trillions of dollars/euros/pounds and so on up for grabs, but the competition to manage these assets is fierce.

Institutional asset managers must find better ways of attracting and keeping client mandates or their market share will continue to be usurped by the retail and private wealth management segments.

1 Asset Management 2020 - A Brave New World, PwC, 20142 Global Asset Management 2016: Doubling Down on Data, Boston Consulting Group (BCG), July 2016 3 Global Investment Management Assets, Revenue, and Operating Margins Slump in 2015, Press Release, Casey Quirk, January 20, 2016 4New Normal?: The Global Private Banking Industry Buffetted by Tough Market Conditions with Many Seeing AuM and Margin Dips, Press Release, Scorpio Partnership5 Global Asset Management 2016: Doubling Down on Data, Boston Consulting Group (BCG), July 2016.

7

100

80

60

40

20

0

4

2

0

-1

2002

2003-2007 2009

2011 2013 2015

2007 2008 2014 2015 2008 2010

2012 2014

Global AuM ($trillions)

Global AuM growth paused at $71.4 trillion…

Net flows were the primary source of asset growth as markets, currencies, or both declined in many regions

…while net flows were flat at 1.5%

Average net flows as a share of AuM at the beginnig of each year (%)

29

5243

70.5 71.412%

5%

1%

4.0

1.0 0.1

-0.2

-0.5

1.2

1.6 1.71.5

Figure 1: Global AuM growth stalled in 2015 owing to limited market appreciation and currency impact

Source: BCG Global Asset Management Market-Sizing Database 2016; BCG Global Asset Management Benchmarking Database 2016. Note: Sizing corresponds to AuM professionally managed in exchange for management fees; includes captive AuM of insurance groups or pension funds if those AuM are delegated to asset management entitles with fees paid. Forty-three markets were covered globally, including offshore AuM. For all countries whose currency is not the US dollar, we applied the average 2015 US dollar exchange rate to all past years to synchronize current and historic data. AuM decreases shown for past years reflect the 2015 appreciation of the US dollar.

8Chapter two | The good, the bad and the ugly

Note: Those answering “don’t know” have been removed from the above results.

The annual revenue increase correlates linearly with the annual increase in assets under management. Meaning that respondents expect to see very similar growth rate for both of these areas.

The vast majority of respondents have a positive revenue and AuM growth outlook with a large cluster of respondents expecting modest annual growth rates in the range of 1-5%.

There is a cluster of “high growers” who expect significant growth exceeding 10% in both annual revenue and assests under management.

Q: Over the next three years, how much of an increase/decrease in annual revenue are you expecting?Q: For the same time period, how much of an annual increase/decrease in AuM are you expecting? (n=83)

Figure 2: The correlation between AuM growth and revenue growth rates

Annual increase in Revenue

Ann

ual i

ncre

ase

in A

sset

s un

der

Man

agem

ent

29%

Negativegrowth

0%

0-5

%6

-9%

10-2

0%

>20

%

1-5% 6-9% >10%

10%

10% 19%

13%

3%

3%

3%2%

2%

6%

Chapter two | The good, the bad and the ugly

Respondents were asked to project their own annual growth rates for both AuM and revenue over the next three years. As shown in Figure 2, there is a high degree of correlation between AuM growth and revenue growth rates.

Just under half of the respondents are expecting modest (less than 5%) growth in both AuM and revenue while a quarter of the respondents are very optimistic, anticipating double-digit annual growth rates for both AuM and revenue.

In general, European and Asia-Pacific respondents were more optimistic than their North American counterparts when it comes to AuM growth (revenue growth expec-tations were similar across regions). Roughly half of the European (48%) and Asia-Pacific (55%) respondents expect AuM growth of 10%+ per year as compared to only 17% for North American respondents.

Larger companies (200+ investment management employees) are clearly more optimistic than their smaller counterparts. To illustrate, 84% of large asset managers expect annual revenue growth of 6% or more; only 36% of the small asset managers indicate the same. For annual AuM growth, the “6%+ or more” numbers are 73% for large firms and 56% for the smaller ones.

In summary, it appears that the larger respondents expect to significantly exceed the 6% AuM growth projection for the market as a whole. If this prediction holds true, then it is simply a continuation of the “big getting bigger” pattern that has been in place since the global financial crisis. In terms of revenue growth, the respondents seem to be wildly optimistic when their expectations are compared with the pressure on institutional revenues observed in recent years. Only time will tell whether or not the rosy outlook on revenue growth is warranted.

Key takeaways

• After years of consistent mid-single digit growth, AuM and revenue growth has come to a standstill in 2015 (particularly for the institutional segment).

• Despite this, buy-side investment managers continue to be optimistic about growth prospects for both AuM and revenue going forward.

• The larger asset managers continue to grow at the expense of the smaller ones.• It remains to be seen whether or not the optimistic growth forecasts have a basis in reality.

10

A NEW GROWTH PARADIGM

CHAPTER THREE

We will be focusing on high quality service and promoting our existing products into these markets. We will also be looking to add new products to our portfolio and the ability to innovate and be agile will be fundamental to our growth aspirations

“HEAD OF ITUS$300B AUM Global Asset Manager

11Chapter three | A new growth paradigm

INNOVATION = GROWTH CREATION

In order to outperform your peers, it is imperative that all elements are in place to accelerate growth and take advantage of new investment opportunities as they arise. As outlined below, growth through increased product innovation and better levels of client service are moving to the forefront relative to other growth alternatives.

PRIORITIES AND STRATEGIC FOCUS

On the topic of regulation/compliance, it is worth noting that only half (50%) of the respondents citing it as a top

three priority also cited regulatory compliance as a top three barrier to growth going forward. This implies that

Growth through more diversified offerings starts with a prudent investment strategy supported by elite talent capable of executing on the strategy and capturing alpha. However, realizing growth through an expanded portfolio of investment options is not done with foresight and ability alone. You need reliable data to ensure that you have the information and intelligence to support any investment decisions made. You also need

suitable infrastructure capable of assimilating the data and executing your investment strategies, regardless of asset class, venue or transaction volumes.

The following sections outline business decision makers’ thoughts with respect to strategic priorities, focus areas and key challenges, as well as how they intend to grow their businesses.

There are three key focus areas when it comes to what respondents will be prioritizing in the next 12-18 months. These include acquiring new clients (securing new net inflows), regulatory compliance, and profit growth. The latter is deemed as more important than cost control or top line revenue growth. The survey findings confirm that despite current market volatility and a climate of uncertainty, growth is high on the agenda.

12

many companies are looking to be at the forefront (proactive) in terms of compliance rather than wait for edicts to come out and then react on an ad hoc basis.

When it comes to respondents’ primary means of attracting or retaining clients, the responses vary. Having said that, there are as many choosing “superior service” versus the other options put together (not including “don’t know” or “other”). Under the “other” category, 7% cited “higher performance”; otherwise there were no more than two percent (2%) of responses for a given item. Note that for the top five strategic priorities, “superior service” was listed as the top strategic focus for all of them.

The next highest item in terms of focus is product innovation. Combined with superior service (which in this context might include increasing the level of transparency, timeliness, and accuracy of reporting, and improving control over risk exposure), roughly half of the respondents see improved products and services as the primary focus going forward. In a somewhat surprising development, only one respondent was focused on globalization while only 6% are focusing on M&A as a means of growth. There are various reasons for this phenomenon; one likely cause is the proliferation of digital technologies that have disrupted the private wealth space and will eventually find their way into the institutional buy-side sector. Increased levels of automation allow for faster investment processing and support of esoteric financial

instruments or previously uncommon asset classes that for the most part were managed through spreadsheets and similar workarounds. This digital encroachment facilitates support of more products and services but also places demands on the infrastructure to keep up, particularly with the ever-expanding volumes of data and information.

Of course, the realization of any growth strategy is inevitably fraught with challenges. While the specter of regulation has hovered over the industry for almost ten years, regulatory compliance continues to be the biggest barrier to growth. Other notable barriers include competitive pressures and the ability to attract top talent. In terms of the “other” category, 12% cited “market conditions” or similar, otherwise no more than 2% of responses were given for a particular item.

Note that company size has a material impact on top priorities. The smaller investment managers (less than 200 employees) are twice as likely to have regulation as a top priority and eight times as likely to prioritize operating model than their larger counterparts. The larger investment managers see competitive pressure (26%) and regulation (22%) as the two biggest challenges while the smaller firms see regulation (46%) and operating model (31%) as their biggest concerns.

13

Strategic priorities Strategy focus Strategic challenges

Other

Client retention

Risk mitigation

Revenue growth

Cost control

Profit growth

Regulatory compliance

New client aquisition

Don’t know Other Don’t know

Other

Getting an adequate overview of current

positions

Too long to support a new asset class

Data management

Too long to introduce a new product

Meeting reporting requirements

Undue reliance on manual processes

Current operating model

Talent acquisition/retention

Competetive pressure

Complying with regulation

Don’t know

Globalization

Acquire new clients - M&A

Low cost

Product innovation

Superior service

0 10 20 30 40 50 % 0 10 20 30 40 50 60 %0 10 20 30 %

First general priority First greater barrier

Second general priority Second greatest barrier

Third general priority Third greatest barrier

Key takeaways

• Growth dominates the agenda of priorities, along with regulatory compliance. Growth in profit is seen as more important than growth in revenue.

• In terms of differentiation - what investment managers intend to focus on to support their priorities - provision of superior service is the clear winner, followed by product innovation.

• As has been the case for almost ten years, regulation remains the biggest barrier to growth. The issue of regulation is more acute for smaller asset managers than it is for the larger ones. Dealing with well-equipped competitors and retaining elite talent are also identified as issues.

Figure 3: The key strategic priorities, focus areas and challenges

14Chapter three | A new growth paradigm

Consistent with the findings concerning strategic focus, it seems that firms wishing to grow through globalization (entering new geographies) or M&A have already done so as the appetite for these

strategies is minimal going forward. Similarly, it seems that cost control initiatives have become less prevalent as the focus shifts from cost control and risk mitigation toward growth.

It is one thing to state that you expect to grow by a certain percentage or amount with a given strategic approach; it is another thing to articulate how exactly the strategy is to be executed in practice. As shown in Figure 4, the introduction of new products and services is clearly the preferred strategy when it comes to realizing growth aspirations. This goes hand-in-hand with the findings from the previous section, where superior service is seen as the most important focus area/differentiator, followed by product innovation.

HOW DO ASSET MANAGERS INTEND TO REALIZE GROWTH?

5

4

3

2

1

Introduce new products/services

Support a new asset class

Low-cost leadership

Enter a new geography/market

Merger/ acquisition

Ver

y lik

ely

Ver

y un

likel

y

Figure 4: Likelihood of pursuing one of the following growth strategies within 24 months

3.8

3.2 3.2

2.3 2.2

3.7 3.5

2.8

2.2 2.0

4.4

3.3

2.5 2.72.4

Europe North America Asia-Pacific

New paradigm:Growth through innovation

Old paradigm:Growth through cost leadership and expansion

Chapter three | A new growth paradigm

This is somewhat surprising as much of the recent expert opinion espousest new frontiers (globalization) or simply buying the competencies/expertise/assets you do not already have (M&A) among the primary means of growing. It seems that the buy-side investment managers interviewed have a differing view. The question then becomes why or how this paradigm shift came about?

The simple explanation is that those investment managers who want to grow through entering new geographical markets either have already done so or have established a comprehensive global presence. While the pundits continue to predict an inevitable wave of consolidation among investment managers, the reality is that M&As are a resource-consuming, arduous process that may take months or even years to bear fruit.

At the same time, the allure of more esoteric asset classes such as alternatives, derivatives and solutions has only become stronger over time. Commensurate with the rise in popularity of these asset classes is digitalization and the advances in investment management technology that facilitate quick, efficient and transparent trading of any number of financial instruments.

Investment managers have seen higher returns (and in some cases, higher fees) from, for example, passives and alternatives, and are adding these to their offerings to secure growth. This movement has gathered momentum to the point where new products and services have become the predominant means of differentiation and growth.

• Growth dominates the agenda of priorities, along with regulatory compliance. Growth in profit is seen as more important than growth in revenue.• In terms of differentiation/what investment managers intend to focus on to support their priorities, provision of superior service is the clear winner, followed by product innovation.• As has been the case for almost ten years, regulation remains the biggest barrier to growth. The issue of regulation is more acute for smaller asset managers than it is for the larger ones. Dealing with well-equipped competitors and retaining elite talent are also identified as issues.

Key takeaways

• The introduction of new products and services is viewed as the prevalent means of achieving growth

• There is only a lukewarm appetite for supporting new asset classes or through leveraging operational efficiency to serve as a low cost provider

• There is limited sentiment for M&A or new geographical market entry

CONCLUSIONCHAPTER FOUR

Firms will need to compete on either scale/ costs or by providing specialised products and services. Either way having the right technology is key. However, the technology must fit the strategy, with the cost play leaning towards simpler centralized IT infrastructures

“

HEAD OF OPERATIONSUS$60B AuM UK Asset Manager

17Chapter four | Conclusion

These points were reflected in the feedback from practitioners interviewed as part of the qualitative interview process. The prevailing sentiment was quite clear; if you do not have a complete, trans-parent overview of your investment data, as well as the infrastructure to seamlessly support whatever asset classes, products, and markets you want to trade in, growth is improbable at best and impossible at worst.

The qualitative interviews revealed that regardless of your target operating model or growth stra-tegies, certain factors must be in place in order to execute. These include:

• Accurate, timely and complete investment data, covering all assets and markets the company trades in. Data is the foundation for any investment strategy; without the right data everything else is moot.

• Complete transparency and ability to track past, present and future positions across asset classes, including cash. Industry pundits and solution providers often refer to this capability as the investment book of record (IBOR).

• The ability to access any investment data regardless of what “office” it came from. For instance, back office accountants can view position data from the front office, while front office personnel can access performance, risk, accounting, collateral or related data without having to go to the middle/back office first, and so on.

• Full compliance with regulation and/or man-dates, whether driven by clients, governments or regulatory/standardization bodies.

The preceding findings make it clear that growth is high on the agenda, and that provision of new products and services is the primary means by which growth will be achieved. While superior investment performance is the most obvious path to prosperity, provision of superior service and product innovation is a critical focus area. All of these elements – new offerings, better performance, enhanced service levels – are underpinned by timely and effective investment decisions and the infrastructure that supports this.

THE SMART FOUNDATION FOR GROWTH

WHITE PAPER

Learn how an investment book of record (IBOR) helps you on a daily basis to improve focus on your core business and provides the foundation for innovation as well as the ability to tap into new growth opportunities.

CAN YOU COMPETE WITHOUT ONE?

LEARN MORE

18Chapter four | Conclusion

• Having a small number of IT solutions increases the likelihood of leveraging the same data, regardless of whether you are working in the front office, middle office, or back office. There can be only “one version of the truth” and this is much more likely when there are fewer solutions/data formats to deal with.

- In contrast, legacy systems were designed to meet the needs of the markets 10-20 years ago – and did this quite well – but cannot keep up with the post financial crisis world of unabated regulation and the rising popularity of asset classes such as derivatives and alternatives.

- Having a large number of function or sub-process specific (best-of-breed) solutions is not always the answer (even if the technology is modern), as these solutions are meant to optimize a certain niche of the investment management value chain. They are not designed to work with a series of other, disparate applications with different database types, technology platforms, asynchronous upgrade schedules and so on.

- A smaller number of IT solutions reduces the chance of running into issues brought about by different data formats, the need to consolidate, clean and validate data from any number of sources, and the time and resources needed to undertake these steps before the data can be used for decision-making purposes (as well as meet client and regulatory reporting requirements). Latency and the potential for errors manifest themselves in any workflow reliant on a series of different systems/technologies/data structures.

STREAMLINE YOUR GROWTH STRATEGY WITH FEWER SYSTEMS

There is no cure-all solution for deficient or incomplete infra-structure support for your investment strategies. Having said that, regardless of deployment method, it is essential that you have a modern, consolidated IT infrastructure to support your investment decisions. This was borne out by the qualitative feedback from the practitioners interviewed. The reasons for this are manifold:

19Chapter four | Conclusion

• Regardless of what asset classes or markets you trade in, you need effective position and transaction lifecycle monitoring (a.k.a. IBOR) in order to provide transparency to your stakeholders, deal with various reporting requirements, and make informed investment decisions. Having to extract position data from an inordinate number of disparate systems makes these tasks rather onerous.

• You also need a compliance solution (covering both regulatory compliance and client mandates) that is able to leverage data from any part of the application (e.g. performance metrics, risk ratios, accounting figures) in compliance rules and validations. This is much easier and faster to do with fewer systems.

In brief, how you optimize your infrastructure to meet your strategic objectives is up to you, but sometimes less is more. This is particularly true when it comes to the number of solutions needed to support your investment management activities.

20Chapter four | Conclusion

• Are you able to get a view of your positions across all asset classes on demand and in real-time? If not, what is preventing this and what impact does it have on your investment decision-making as well as your ability to support the introduction of new products and services?

• Can you quickly and efficiently get accurate and up-to-date data, representing a single, unassailable source of the truth?

• Are you capable of incorporating information from one part of the system into any other part of the system (e.g. risk and accounting figures in the front office, position data in the back office) without undue reliance on IT or other non-business resources?

• Is your infrastructure capable of meeting reporting needs across stakeholders (clients, regulators, other authorities, auditors) in a timely manner? If not, where is the bottleneck and how can it be fixed?

• Do you find yourself in a situation where you are heavily reliant on manual processes to cover for deficiencies in your infrastructure?

• Given the paradigm shift revealed earlier, how prepared are you to create and launch new products and services? Are you able to do this in a timely and highly automated manner or will it take an inordinate amount of time and resources to support new offerings?

While operational efficiency is the subject of an upcoming white paper, the survey showed that when it comes to supporting their growth strategies, almost half of the respondents (47%) were not confident in either their IT infrastructure or current data management, or both. In other words, they know what they want to do but do not have the means to do it. Based on the paradigms exposed in this paper, coupled with the sentiments expressed in the qualitative interviews, the key questions to consider are these:

THE KEY QUESTIONS TO CONSIDER

21Chapter four | Conclusion

The respondents, all at buy-side investment management firms with assets under management (AuM) of USD 10 billion or more, consisted of 83 strategic respondents (responsible for investment strategies and related business functions). Some of the findings in this paper are supplemented by input from an additional 72 IT/operations respondents

(responsible for technical infrastructure and ope-rations).

The 155 total respondents were spread across Europe, North America and Asia-Pacific. A break-down of respondents by title and industry is given in Figure 5.

To ascertain and assess the growth aspirations of buy-side investment managers, in May/June 2016 market research firm Lindberg International talked to 150+ respondents worldwide with respect to their growth aspirations, challenges and suitability of their IT infrastructure. All interviews were conducted by telephone, ensuring that any additional input/clarifications concerning any numerical data were also incorporated into the results.

SURVEY METHODOLOGY

As stated earlier, there is no easy answer when it comes to the optimal solution or operating model in support of your growth strategy. Nevertheless, without adequate infrastructure and data support for your strategies, your probability of success is greatly reduced. If you struggle with the above questions, then perhaps it is time to revisit your infrastructure and institute appropriate remedies.

LEARN MORE

REPORT

Improve data quality, boost automation and support speciality asset classes.

GET READY TO UNLEASH YOURFRONT OFFICE

LEARN MORE

22Chapter four | Conclusion

40%

30%

20%

10%

0%

40%

30%

20%

10%

0%

Title within company - strategy

Title within company - IT

28%

18%

8%6%

33%

12%

6% 6%4%

2% 2% 2% 1%

1%1%1%3%

Respondents discussingthe strategy perspectives

Respondents discussingthe IT perspective

Directors of operations, Manager asset management, Manager

wealth management, Head of group finance, Sales director, Customer

data manager, CIO, Managing partner, Fund administration,

Directors of administration. Business development management,

Treasure manager, Senior financial risk manager, Portfolio manager,

Director and founder, General manager, Assistant manager, Head of security processes, Department

director

Project management and controlling, Head of application

engineering, Head of IT, Investment manager, Head of operations,

Employee back office, IT-manager, Head of back office, Network

security manager, Head of operation and valuation, System owner, System

administrator, Head client service & reporting, Fund administration, IT-coordinator, Business analyst,

Business expert, Head of treasury, Head of middle office, Portfolio

manager information management

83

72

CE

O/M

D/G

MH

ead

of

De

par

tme

nt

Hea

d o

f D

ep

artm

en

tC

IO/C

TO

CO

OO

pe

rati

on

s M

anag

er

CIO

/CT

O

Se

nio

r M

anag

er

CF

O

CS

O

EV

P/S

VP

/CV

P

Op

era

tio

ns

Man

age

r

Vic

e P

resi

de

nt

Vic

e P

resi

de

nt

CE

O/M

DI/

GM

CF

O

CS

O

Oth

er

Oth

er

33%

31%

Figure 5: A breakdown of respondents by job title

In terms of size, half of the respondents had global investment management operations with less than 200 staff while the other half ranged from 200 to several thousand employees. At the local level (respondent location), 77% had less than 200 investment management staff.

The respondents are somewhat internationally focused, with 40% having operations outside of their own geographical region (Europe, North America or Asia-Pacific) and 30% having operations in three or more continents.

As a supplement to the quantitative survey run by Lindberg International, Citisoft, an investment management consulting firm, conducted a series of qualitative interviews with C-level executives at buy-side investment managers throughout Europe and North America. The purpose of these interviews was to corroborate and discuss the findings from the quantitative survey as well as to cover how the eventual secession of the UK from the European Union (Brexit) will impact medium- to long-term growth prospects (note that the quantitative survey was completed shortly before the Brexit vote was held).

24Chapter three | A new growth paradigm

ABOUT SIMCORP SimCorp provides integrated, best-in-class investment management solutionsto the world’s leading asset managers, fund managers, asset servicers, pensionand insurance funds, wealth managers and sovereign wealth funds. Whetherdeployed on premise or as an ASP solution, its core system, SimCorp Dimension, supports the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests more than 20% of its annual revenue in R&D, helping clients develop their business and stay ahead of ever-changing industry demands. Listed on NASDAQ Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific.

For more information, please visit www.simcorp.com.

ONE SYSTEM FOR A COMPLEX WORLD

LEGAL NOTICEThe contents of this publication are for generalinformation and illustrative purposes only andare used at the reader’s own risk. SimCorp usesall reasonable endeavors to ensure the accuracyof the information. However, SimCorp does notguarantee or warrant the accuracy, completeness,factual correctness, or reliability of any informationin this publication and does not accept liability forerrors, omissions, inaccuracies, or typographicalerrors. The views and opinions expressed in thispublication are not necessarily those of SimCorp.© 2016 SimCorp A/S. All rights reserved. Withoutlimiting rights under copyright, no part of this

document may be reproduced, stored in, orintroduced into a retrieval system, or transmittedin any form, by any means (electronic, mechanical,photocopying, recording, or otherwise), or for anypurpose without the express written permissionof SimCorp A/S. SimCorp, the SimCorp logo,SimCorp Dimension, and SimCorp Services areeither registered trademarks or trademarks ofSimCorp A/S in Denmark and/or other countries.Refer to www.simcorp. com/trademarks for a fulllist of SimCorp A/S trademarks. Other trademarksreferred to in this document are the property oftheir respective owners.