Asset managers remain bullish about their own future

Even in the depths of the market downturn, most fund managers were confident they were better-placed than their competitors to cope with the crisis.

A survey of institutional asset management firms throughout North America, Europe and Asia, conducted by New York consultancy FS Associates, found that 82% of the firms who responded believed the strategic measures they had taken would leave them better-positioned than their competitors once the current crisis had passed.

Although almost all the firms who responded said they had seen no need to alter their investment process, roughly half said some change may be necessary in future to respond to changes in the investment landscape.

While retaining clients is obviously a priority, 90% of the firms surveyed believed that increased communication would be enough to keep clients happy and very few were considering any adjustments to charging structures. The survey responses were gathered in the last quarter of 2008, at a time when market confidence had plummeted.

The report concluded that fund managers' general belief that they were better than average should not come as a surprise. 'It can be expected that few managers would want to predict that, despite their best efforts, they will come out on the losing end, so there will be an upward bias.'

Fernand Schoppig, president of FS Associates, said: 'The fact that stands out for me is the enormous optimism that comes from the survey results.'

Schoppig (pictured above) said the election of Barack Obama as US president had partly served to fuel this optimism, but also highlighted age and experience as factors that should be considered in assessing sentiment. 'Those who have been through the '87 crash will remember not to panic because they've gone through it before,' he said. 'Younger people will be more shell-shocked, because they have not seen it before.'