CIOs Are Optimistic for Growth

February 10, 2004 (—Ninety percent of chief investment officers (CIOs) are optimistic about increased growth for assets under management (AUM) during 2004, according to a survey by Barra, a risk management company.

CIOs expect the growth to be a result of market appreciation and new client mandates and expect the demand to influence their business, the 2004 Barra CIO Survey said.

Additionally, a majority of those polled anticipate that alternative asset classes, such as hedge funds, private equity and structured fixed income, will play a noteworthy role in increased AUM.     CIOs in North America expected that the US will see the largest growth in AUM.  

However, CIOs in the survey realized they have to increase their expertise in alternative assets and plan to do that by introducing new products and personnel, as well as by pursuing additional acquisitions and partnerships.

Barra also polled the officers about risk management and found that 97% think risk management is more, or equally important to their clients than it was a year ago, and that CIOs are, as a result, becoming more involved in the issue.

The Barra study, conducted by Greenwich Associates, polled 62 chief investment officers of major US, UK and Continental European asset management firms with an average of more than $15 billion in assets under management.