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Asset growth levels vastly different on sides of the pond survey, finds

News Team, 30/06/2020

Assets under management (AUM) should manage to grow by about 2.5% over the next year led mainly by real assets and infrastructure, a global survey of financial professionals suggests.

The survey, by Natixis Investment Managers, found over half of the 2,700 respondents believed alternatives to be the most attractive asset class in the current environment, particularly as a potential way to generate yield.

Real assets ranked highly with over a third of respondents and infrastructure was also strongly highlighted.

Another finding was that nearly 80 percent of the financial professionals felt current markets would lead to a high level of active management in portfolios.

However, across the pond, US financial professionals expect their assets under management to increase by 7.2 percent over the next 12 months, with annualised growth of 17.2 percent over the next three years.

Nine in 10 advisors think this growth will be driven by new assets from new clients, and four in five say it will be driven by new assets from current clients. Only 55 percent are counting on market returns as a primary growth driver.

These findings were based on a survey of 300 US financial professionals with $29 billion in assets.

Despite their optimism for their practices, 84 percent of US financial advisors acknowledged that business development was a challenge. Consider that in a typical work week, they dedicate a mere 9 percent of their time to prospecting for new clients.

Fifty-one percent of their time is spent meeting or communicating with current clients, 15 percent is divided between investing or reallocating client investments and 23 percent is devoted to general administration, marketing, compliance and education/reading/social media.

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