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FUTURE OF THE INVESTMENT PROFESSION
SURVEY RESPONSES FROM THE MIDDLE EAST
AND AFRICA
RESPONSES FROM 133 SENIOR INVESTMENT
DECISION MAKERS IN THE MIDDLE EAST AND AFRICA
What is your title?
For how many years have you worked as an
investment management professional?
Portfolio manager
21%
Chief investment officer
16%
20 years or more
Managing director
9%
14%
Other
10-20 years
13%
Research analyst
25%
11%
2-10 years
Director of research
Chief operating officer
63%
8%
18%
Less than 2 years
3%
2
STRONG REPRESENTATION FROM CFA
CHARTER HOLDERS AND MBAS
Do you hold any of the following credentials?
Master of Business Administration (MBA)
54%
Chartered Financial Analyst (CFA)
39%
Chartered Accountant (CA)
10%
Advanced degree in a technical discipline such as mathematics or a
natural science
9%
Financial Risk Manager (FRM)
6%
Certified/Chartered Public Accountant (CPA)
5%
Certified Financial Planner (CFP)
4%
Chartered Alternative Investment Analyst (CAIA)
3%
Juris Doctor (JD)
Other degree or professional designation
Other graduate degree
2%
3%
26%
3
BROAD RANGE OF INSTITUTION TYPES
What type of institution do you work for?
Asset management firm
34%
Family office
14%
Financial advisory firm focused on institutional
investors
11%
Financial advisory firm focused on private
investors
10%
Private pension
8%
Insurance company
8%
Public pension
Managers,
34%
Advisers, 22%
5%
Endowment
2%
Foundation
1%
Other
Other, 11%
8%
4
NORTH AMERICAN RESPONDENTS COME
FROM A BROAD RANGE OF AUM BANDS
Where is your position located?
Latin America
0%
North America
0%
Middle East and Africa
What are your institution's assets under
management (in USD)?
$50 billion or more
8%
100%
Europe
0%
Asia-Pacific
0%
$10 billion to $50 billion
20%
$1 billion to $10 billion
29%
$500 million to $1 billion
Are you female or male?
Prefer not to
say, 1%
Female,
13%
17%
$250 million to $500
million
$100 million to $250
million
Less than $100 million
13%
2%
11%
Male, 86%
5
SKILLS FOR THE FUTURE
6
SKILLS TO DETERMINE EXECUTIVE SUCCESS
Which of the following skills will be more important for the success of <institutional leaders> in 5-10
years?
Skills that will be most important for the success of...
CIOs/PMs
Ability to articulate a compelling vision for the institution
CEOs of AMs
32%
Relationship-building skills
41%
CEOs of AOs
40%
35%
40%
37%
Specialized financial analysis skills
27%
34%
32%
Ability to instill a culture of ethical decision making
26%
34%
32%
Understanding of corporate governance/regulations
30%
Sophisticated knowledge of IT (e.g., programming, artificial intelligence,
etc.)
Knowledge of science, engineering, and mathematics
Crisis management skills
Consultative selling skills
34%
24%
34%
27%
International and cross-cultural skills (including foreign languages) 14%
25%
17%
15%
37%
21%
27%
33%
20%
12%
34%
29%
21%
7
SOFT SKILLS EMERGE AS SOURCES OF EXECUTIVE
SUCCESS
CIOs/PMs
CEOs of AMs CEOs of AOs
Rank
%
Rank
%
Rank
%
Ability to articulate a compelling vision for the
institution
4
32%
1
40%
2
35%
Relationship-building skills
1
41%
2
40%
1
37%
Specialized financial analysis skills
6
27%
4
34%
5
32%
Ability to instill a culture of ethical decision making
8
26%
4
34%
6
32%
Sophisticated knowledge of IT
2
34%
9
17%
9
20%
5
30%
7
25%
4
33%
9
24%
10
15%
10
12%
Consultative selling skills
7
27%
8
21%
7
29%
Crisis management skills
2
34%
3
37%
3
34%
International and cross-cultural skills
10
14%
6
27%
8
21%
Understanding of corporate
governance/regulations
Knowledge of science, engineering, and
mathematics
8
MOST IMPORTANT SKILLS ARE OFTEN HARD TO FIND
How available are each of the following skills in the labor pool of prospective employees?
Skills that will be most
important for the
success of...
CIOs/ CEOs of CEOs of
AMs
PMs
AOs
Very hard to
find
Somewhat
availabie
Hard to
find
Ability to articulate a compelling vision for the institution
4
1
2
9%
Sophisticated knowledge of IT (e.g., programming, artificial intelligence, etc.)
2
9
9
6%
Relationship-building skills
1
2
1
4% 18%
Crisis management skills
2
3
3
Specialized financial analysis skills
6
4
5
Consultative selling skills
7
8
7
5% 30%
Knowledge of science, engineering, and mathematics
9
10
10
5% 19%
6% 22%
34%
35%
8%
44%
13%
47%
13%
60%
31%
6%
8
4
6
Understanding of corporate governance/regulations
5
7
4
4% 17%
International and cross-cultural skills (including foreign languages)
10
6
8
6%
26%
18%
44%
48%
Ability to instill a culture of ethical decision making
Readily
availabie
17%
35%
11%
48%
38%
17%
39%
55%
56%
31%
17%
23%
38%
9
A SOLID MAJORITY CALLS FOR INCREASED TRAINING
ON ETHICAL DECISION MAKING
Q4. Over the next 5-10 years, which of the following skills should employers cultivate through structured
training programs with their new employees?
Skills that will be most
important for the
success of...
CIOs/ CEOs of CEOs of Very hard to
AMs
PMs
AOs
find
1 2
9%
Sophisticated knowledge of IT (e.g., programming, artificial intelligence, etc.)
2 9 9
6%
Relationship-building skills
1 2 1
4% 18%
Crisis management skills
2 3 3
8%
Specialized financial analysis skills
6
4
5
6%
Consultative selling skills
7
8
7
5%
Ability to articulate a compelling vision for the institution
Knowledge of science, engineering, and mathematics
4
Hard to
find
Somewhat Readily
availabie availabie
34%
35%
13%
44%
47%
13%
42%
44%
48%
18%
53%
17%
51%
35%
30%
11%
48%
9 10 10
5% 19%
Ability to instill a culture of ethical decision making
8
4
6
6% 22%
Understanding of corporate governance/regulations
5
7
4
4% 17%
56%
10 6
8
6% 26%
31%
International and cross-cultural skills (including foreign languages)
44%
60%
31%
Training
focus
38%
17%
39%
55%
17%
23%
38%
63%
51%
49%
60%
58%
66%
10
STRATEGIC THREATS AND
OPPORTUNITIES FOR THE INDUSTRY
11
RESPONDENTS HAVE A POSITIVE VIEW OF GLOBALIZATION
AND TECHNOLOGY’S EFFECT ON THEIR CAREERS
We're interested in your views on how technology and globalization will affect investment
management professionals' careers over the next 5-10 years.
In the next 5-10 years, new information technology in the
investment management industry will …
2%
17%
In the next 5-10 years, globalization in the investment management
industry will ...
1%
Pose a threat to the employment of professionals like me
33%
17%
2
24%
3
4
40%
37%
8%
22%
Offer new opportunities for professionals like me
12
TECHNOLOGY AND GLOBALIZATION OFFER
STRATEGIC OPPORTUNITY TO FIRMS
We're interested in your views on how technology and globalization will affect investment management
firms over the next 5-10 years.
In the next 5-10 years, new information technology in the investment
management industry will ...
2%
37%
In the next 5-10 years, globalization in the investment management industry
will ...
1%
Pose a strategic threat to financial institutions like mine
2
3
23%
4
24%
27%
26%
29%
11%
20%
Offer strategic opportunities to financial institutions like mine
13
CONSOLIDATION, NOT FRAGMENTATION, OVER THE
NEXT 5-10 YEARS
A. In the next 5-10 years, I expect...
19%
B. In the next 5-10 years, I expect...
21%
22%
47%
32%
60%
Substantial consolidation of the peers and competitors of my
institution
Some consolidation of the peers and competitors of my
institution
Little or no consolidation of the peers and competitors of my
institution
Many new market entrants and competitors of my institution
A moderate number new market entrants and competitors of my
institution
Few new market entrants and competitors of my institution
14
MORE THAN 70% OF RESPONDENTS FORESEE FLAT OR
CONTRACTING MARGINS AT ASSET MANAGEMENT FIRMS
C. In the next 5-10 years, I expect...
9%
31%
20%
13%
27%
Substantial growth in profit margins among asset management firms
Moderate growth in profit margins among asset management firms
Little or no growth in profit margins among asset management firms
Moderate contraction in profit margins among asset management firms
Substantial contraction in profit margins among asset management firms
15
THE BIG PICTURE
16
RESPONDENTS SEE A POSITIVE CONTRIBUTION FROM THE
PROFESSION—CONTINGENT ON “HIGHER PRINCIPLES”
To what extent do you agree with the following statements about the role of the
investment management profession on society at large?
The investment management profession's current impact on
society is...
The investment management profession’s future impact on
society is...
The investment management profession's potential impact on
society contingent on incorporating higher principles could be
...
Very positive
Somewhat positive
8%
76%
20%
17%
38%
47%
Somewhat negative
41%
37%
0%
1%
15%
1%
Very negative
17
OPTIMISM ABOUT ESG, TEMPERED BY
REALISM ON OTHER MATTERS
To what extent do you agree with the following statements about the investment management industry?
Investors will continue to increase their allocations to passive investment vehicles over the
next 5-10 years.
Asset management fees generally reflect the value provided to clients.
Financial centers in Asia will have increasing influence in the investment industry in the
next 5-10 years.
24%
44%
8%
56%
14%
47%
Environmental, social, and governance factors will become increasingly important to
investment decision makers in the next 5-10 years.
22%
Institutional investors will look to reduce costs by insourcing more investment
management activities.
22%
35%
Over the next 5-10 years, financial markets and capitalism will contribute to increasing
economic equality.
21%
36%
Meaningful increases in interest rates, economic growth, the equity-risk premium, and
other macroeconomic indicators will occur in the next 5-10 years.
14%
Clients are often sold inappropriate financial products
13%
Strongly agree
Agree
Strongly disagree
11% 2%
21%
17%
17%
17%
27%
22%
40%
Disagree
25%
21%
31%
31%
14% 2%
17%
38%
26%
Financial markets/investment management are being regulated effectively.
17%
23%
26%
5%
3%
5%
14% 2%
19%
3%
20%
4%
28%
3%
Neutral/no opinion
18