As investment demands shift and competition intensifies, asset managers are competing across a number of fronts to unlock a new wave of growth.

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ASSET MANAGERS

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State Street 2014 Asset Manager Survey
On behalf of State Street, FT Remark conducted a global survey of 300 senior executives
at asset management firms globally during April and May 2014, to examine the future
outlook for the sector. Respondents were equally distributed across North America,
Europe and Asia Pacific.
About the Research
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43%
17%
19%
12%
7% 2% US$5-$24bn
US$25-$49bn
US$50-$99bn
US$100-$200bn
US$200-$499bn
US$500bn or greater
Source: State Street 2014 Asset Manager Survey, conducted by FT Remark
78%
17%
5%
Both retail and
institutional
Institutional
only
Retail only
Respondents by Size
(Assets under Management)
Respondents by
Type of Assets Managed

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ASSET MANAGERS
48%
24%
Expected Sources of Growth: Business Strategy
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28%
72%
New Country Markets
Developing new products
for existing markets
Growing market share of existing
products in existing markets
20%
8%
Existing Country Markets
Bringing existing products
to new markets
Developing new products
for new markets
Which of these is the greatest growth opportunity for your business over the next
three years?
Source: State Street 2014 Asset Manager Survey, conducted by FT Remark

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Few asset managers are currently
equipped to thrive when offering
multi-asset solutions
Challenges to Growth: Asset Managers Acknowledge a Capability Gap
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67% 74%
Multi-asset solutions are the
investment strategy that will
contribute most to business
growth over the next three years
Source: State Street 2014 Asset Manager Survey, conducted by FT Remark
76% say that changing client demands are causing a fundamental shift
in their overall business strategy

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Challenges to Growth: Building Internal Expertise
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21%
21%
19%
13%
18%
8%
20%
15%
10%
13%
40%
2%
0% 20% 40% 60%
Building the necessary internal expertise
Selecting the right distribution platform(s)
Determining the optimal fund
structure/domicile
Creating the necessary operational and
technology infrastructure
Overcoming regulatory barriers
Gaining internal consensus on strategy
Single biggest challenge when launching new products in existing markets
Single biggest challenge when entering new markets
What is the single biggest challenge for your firm when launching new products in
your existing markets or expanding to new markets?
Source: State Street 2014 Asset Manager Survey, conducted by FT Remark
55% report that distribution
challenges deter them from
investing in otherwise
highly attractive markets

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Capitalizing on New Opportunities: Number of Distribution Channels
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Please indicate which of the following will be likely for your business over the next
three years.
49%
32%
19%
There will be no change
Will increase number of distribution channels
Will decrease number of distribution channels
Source: State Street 2014 Asset Manager Survey, conducted by FT Remark

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ASSET MANAGERS
Capitalizing on New Opportunities: Investment in Front Office Capabilities
7%
4%
3%
13%
6%
20%
11%
11%
11%
28%
29%
26%
33%
39%
50%
28%
37%
36%
48%
46%
36%
31%
27%
17%
0% 20% 40% 60% 80% 100%
Risk analytics
Performance analytics
Data integration
Acquiring new talent to resource higher volume of
business
Skills training
Acquiring new talent to address capability gaps
None Minimal Moderate Significant
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What level of investment in your front office capabilities is required to support
your business over the next three years?
Source: State Street 2014 Asset Manager Survey, conducted by FT Remark
91% believe that asset managers who provide the greatest degree of transparency to
clients have a competitive advantage in attracting new assets

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The Bottom Line • Asset managers must prioritize those shortcomings that hinder immediate
growth prospects
• The most innovative asset managers are already adjusting to new customer
demands, transforming single asset products into fully-serviced solutions
• Leaders are investing heavily in the tools and capabilities required to thrive in
this more specialised and testing environment
Conclusion: How Asset Managers Can Secure Competitive Advantage
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Transformation • Enhance operational efficiency and focus on enterprise-wide agility
• Master regulatory compliance so that regulation is no longer an obstacle
to growth
Tools • Upgrade the front office to support new growth segments and more complex
multi-asset solutions
• Deploy advanced tools to deliver a more outcome-based perspective on
investment risk and performance
Talent • Identify where the new solution set require different skills; augment your
capabilities with the right blend of in-house and external support

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making any decision regarding their utilization.
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This document contains certain statements that may be deemed forward-looking statements, which are based on certain
assumptions and analyses made in light of experience and perception of historical trends, current conditions, expected future
developments and other factors believed appropriate in the circumstances.
CORP-1031E
Expiration Date: 06/30/2015
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