Recent research and white papers

ASSET MANAGEMENT NEWS Q1 2010

Just like the broader industry it serves, the asset management industry is returning to growth. Yet this growth is far from uniform – there are pockets of flourishing activity and areas of continuing weakness. Also included are asset management news updates from around the world.

'Asset Management News Q1 2010', PwC 2010
www.pwc.com/gx/en/asset-management/assets/pdf/AMN0310.pdf
PricewaterhouseCoopers, 28 pages, March 2010

CHALLENGING THE DOMINANCE OF MUTUAL FUNDS? POSITIONING FOR A NEW FINANCIAL LANDSCAPE

This report provides background on Exchange-Traded Funds (ETFs). It describes how they are formed, and provides a comparison between ETFs and Mutual Funds (MFs). It also looks at the proposed changes in ETF regulations and what the future holds for ETFs. Lastly, it considers whether ETFs will challenge the dominance of MFs.

‘Challenging the dominance of mutual funds? Positioning for a new financial landscape', Deloitte 2010
www.deloitte.com/view/en_GX/global/industries/financial-services/investment-management/
Deloitte, 24 pages, March 2010

EVOLVING MODELS IN THE HEDGE FUND INDUSTRY

This report outlines the steps required to achieve a new profitable business model, and outlines the important role that relationships will play in ensuring that hedge funds and their providers operate in a more networked manner.

‘Evolving models in the hedge fund industry', Deloitte 2010
www.deloitte.com/view/en_GX/global/industries/financial-services/investment-management/
Deloitte, 24 pages, February 2010

GLOBAL IT SPENDING TRENDS IN FINANCIAL SERVICES THROUGH 2012 – SURPRISING OPTIMISM ON THE HORIZON

This Research Note presents TowerGroup's 2010 forecast of global IT spending in the financial services industry and identifies some of the principal macroeconomic and financial service industry drivers of this spending. Separate projections by major region and line of business are provided and discussed in the context of the rapidly changing macroeconomic climate.

‘Global IT Spending Trends in Financial Services through 2012 – Surprising Optimism on the Horizon', TowerGroup 2010
www.towergroup.com
TowerGroup, March 2010

POST FINANCIAL CRISIS CHALLENGES FACING THE INVESTMENT MANAGEMENT BUSINESS

Now that the securities and investments industry is emerging from the biggest financial crisis in recent memory and assets under management are beginning to climb back up for both traditional money managers and alternative asset managers, it is time to look at the future of asset management and the forces that will drive this business in the next few years. This TowerGroup ViewPoint discusses three major challenges facing the global active asset management business and offers brief recommendations for the industry going forward.

‘Post Financial Crisis Challenges Facing the Investment Management Business', TowerGroup 2010
www.towergroup.com
TowerGroup, January 2010

SPRING 2010 INSURANCE M&A: OVERCOMING THE CHALLENGES AND LEVERAGING THE LESSONS LEARNED FROM THE FINANCIAL CRISIS

The article raises challenges like evaluating risk, manoeuvring in an evolving regulatory environment and IFRS and tax issues in the context of mergers and acquisitions within the insurance industry. In the light of the recent financial crisis, the authors discuss how insurance companies might improve in mergers and acquisitions deal-making and integration activities and gain premium growth and a strong competitive advantage.

‘Forward focus: 2010 Insurance M&A’, Howard Mills and David Simmons,
Deloitte LLP and Deloitte Tax LLP 2010
www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/c5b00af0fa077210VgnVCM200000bb42f00aRCRD.htm
Deloitte, 12 pages, March 2010

TOP 10 TRENDS FOR HEALTH AND LIFE INSURANCE, 2010

A new report from Aite Group, LLC, presents the top 10 trends in the health and life insurance industries for 2010. Broken down into the top five trends in each category, the report sheds light on key areas of focus within rapidly changing market environments.

‘Top 10 Trends for Health and Life Insurance, 2010’, Aite Group 2010
www.aitegroup.com/reports/201003081.php
Aite Group, 23 pages, March 2010

2009 LIFE INSURANCE OPERATIONS BOOK OF METRICS: EXECUTIVE SUMMARY
Cost containment, as in prior years, remains paramount for insurers. Coupled with the fact that investment income has dropped significantly due to the economic crisis and robust growth continues to prove elusive, the result is a dire need for insurers to focus on efficiencies.

‘2009 Life Insurance Operations Book of Metrics: Executive Summary', Deloitte 2010
www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/article/c1cd52d89c295210VgnVCM100000ba42f00aRCRD.htm?id=gfsi-list-ins
Deloitte, 18 pages, January 2010

ALPHA OR BETA: CHALLENGES AND OPPORTUNITIES FOR TRADITIONAL ACTIVE MANAGERS

As the market continues to polarise, traditional active managers are facing choices between becoming an alpha or beta provider. Providing "beta" returns at "alpha" prices is no longer an option. Many traditional active managers face a choice between repositioning to become a volume-based "beta" provider; focus on high revenue generating "alpha" or; aim to provide a "total solution" providing both types of returns to providers.

‘Alpha or Beta: Challenges and Opportunities for Traditional Active Managers’, Deloitte 2010
www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/Financial%20Services/gfsi-1004-Alpha%20or%20Beta.pdf
Deloitte, 20 pages, April 2010

RISK MANAGEMENT FOR ASSET MANAGEMENT SURVEY 2010

Ernst & Young’s ‘Risk Management for Asset Management 2010’ survey offers a revealing insight into the challenges confronting the industry's risk management professionals. In comparing the views of 29 heads of risk and chief risk officers at several leading asset managers in the UK and continental Europe, the survey provides indications about the future development of the continuing evolution and strategic importance of the risk function.

‘Risk Management for Asset Management Survey 2010’, Ernst & Young 2010
www.ey.com/Publication/vwLUAssets/Risk_Management_for_Asset_Management_Survey_2010/$FILE/Risk_Management_for_Asset_Management_EY_Survey10.pdf
Ernst & Young, 44 pages, May 2010

SOLVENCY II IT VENDOR SPECTRUM

In this report, Celent presents a number of IT vendor solutions for insurance companies within risk management and compliance with Solvency II. Some of the vendors have a broad coverage of the areas within Solvency II, while others have solutions covering specific parts of Solvency II. The report emphasises that insurers must align their IT solutions within the framework of Solvency II.

‘Solvency II IT Vendor Spectrum', Celent 2010
www.celent.com/124_3042.htm
Celent, 90 pages, April 2010

REALITY-CHECKING THE EVOLUTION IN CORE INSURANCE SYSTEMS

In a recent report, Celent has researched a panel of more than 30 insurers about how to best partner with information system vendors. The partnership is considered both on the strategic level and the tactical level and also reactive and proactive approaches are considered. The author of the report thinks that legacy systems have a lot of valuable intellectual capital codified into them but these systems are also inflexible and unresponsive to ongoing changes in the environment. He draws the conclusion that vendors able to address these issues will be highly valued.

‘Reality-Checking the Evolution in Core Insurance Systems’, Celent 2010
www.celent.com/124_2903.htm
Celent, 22 pages, April 2010

RUN-OFF SURVEY 2010

In a survey regarding the management of discontinued businesses (so-called run-off) in the insurance industry, KPMG made a number of findings. The survey targeted 153 key decision-makers of insurers in Germany, Switzerland and Austria. The survey included questions regarding run-off issues and the impact of Solvency II in that context. Some of the findings were that Solvency II may trigger more future transactions, and that due to knowledge of their own portfolios, many companies prefer in-house management to external providers. Another finding was that 85% of the participants were engaged in discontinued businesses.

‘Run-off survey 2010’, KPMG 2010
www.kpmg.com/EU/en/IssuesAndInsights/Articlespublications/Pages/Run-Off-Survey-2010.aspx
KPMG, 28 pages, June 2010

SPRING FINANCIAL STABILITY REPORT 2010

In a recent report, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) presents developments within the insurance and occupational pension fund markets. The report covers market trends for the last few years and it also gives an outlook for the future. The report concludes for example that the insurance industry faces several risks and challenges regarding the risks for low or decreasing interest rates, depressed equity markets and volatility of credit spreads on bonds going forward. Another conclusion is that the recent financial crisis significantly impacted the consumer confidence for pension funds and also impacted them as institutional investors.

‘Spring financial stability report 2010’, CEIOPS 2010
www.ceiops.eu/media/files/publications/reports/Fin-Stability-2010-1/CEIOPS-Spring-2010-Financial-Stability-Report.pdf
CEIOPS, 45 pages, June 2010

New reports published and information which could be relevant for listing can be submitted for review to: Editorial Assistant Mette Trier, mette.trier@simcorp.com