Asset management industry update (Grant Thornton)

February 2012

KEYWORDS: Dodd-Frank Act, Private Equity, Form PF, Hedge Fund Performance, SEC, UCITS, Institutional Investors, ETF, Fund of Funds, CFTC, OTC derivatives, AUM, ESMA, AIFMD, Volcker Rule

Authors:

Winston Wilson, Jack Katz

Organizations:
  • Grant Thornton

Summary:

The turbulent global economic and regulatory environment of the past three years has asset managers considering their current position and formulating growth strategies for 2012 and beyond. Expectations regarding investor expectations, monetary returns and overall growth are being recalibrated to reflect the reality of a slow economic recovery and an uncertain financial and regulatory environment following the 2008 market correction.
Despite the harsh environment, the prospects for the asset management industry — encompassing hedge funds, private equity funds, and registered investment companies — are upbeat because of performance and operational efficiencies achieved during 2011. While heightened regulatory scrutiny has its drawbacks, the greater transparency and stronger risk management practices resulting from this scrutiny are helping the industry restore investor confidence and innovate in the new economy. However, the overall sentiment, particularly given the fact that 2012 is an election year, is one of cautious optimism.

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