Stimulating economic growth and contributing to a sustainable pensions system

The Institute of Financial Services Zug IFZ, part of Lucerne University of Applied Sciences and Arts, and the Asset Management Association Switzerland have produced the fifth edition of the Swiss Asset Management Study providing a comprehensive overview on asset management in Switzerland.

The asset management industry complements the Swiss financial industry with high operational efficiency and with a differentiating value proposition, as the Swiss Asset Management Study 2022 of the Lucerne University of Applied Sciences and Arts and the Asset Management Association Switzerland shows. With sustainable investment having entered center stage as the most important opportunity the asset management industry in Switzerland stays on a growth path despite facing headwinds. The study also highlights where the battlegrounds of the Swiss asset management hub are to improve its competitiveness and performance.

• Asset management is a strongly growing segment of the Swiss financial center with a high operational efficiency
  Asset management complements the financial center with a differentiating value proposition and the AuM per FTE in asset management (AuM of CHF 271 million per FTE) are about three times higher than in private banking (AuM of 94 million per FTE)
• Switzerland is competitive as an asset management hub but with potential for improvement
  In Europe, Switzerland competes on a par with London and Frankfurt in the areas examined (Business Environment, Innovation, Talent, Regulation and Sustainability). Switzerland performs particularly well in the talent dimension, whilst weaknesses are revealed in the regulatory environment
  
• Asset management is an export industry
  About 33% of the AuM managed in Switzerland are managed on behalf of contracting clients abroad. This corresponds to about CHF 1.09 trillion in AuM
  
• The asset management industry creates jobs
  About 10,500 individuals are directly employed in Swiss asset management, whilst a further 48,200 people are indirectly employed in services associated with the industry in a wider scope
  
• Sustainable investment is evaluated as the most important opportunity in the industry and widely adopted by asset managers in Switzerland
  40 percent of the asset management firms participating in the survey indicate having completely integrated ESG criteria into their investment process
  
• Asset managers see the integration of ESG into the investment process as part of their fiduciary duty to their clients
  The alignment of investment strategies with the long-term interests of clients as part of the asset managers’ fiduciary duty is the main driver for integrating ESG criteria into the investment process
  
• Strong business performance in 2021 with an uncertain outlook for 2022 and beyond
  The net revenue pool of the Swiss asset management industry is estimated to be CHF 16.49 billion with profits of CHF 4.95 billion by the end of 2021. However, substantial geopolitical tensions, high inflation and volatile financial markets lead to a more uncertain market outlook
  
• A new record in domestically managed assets was reached in 2021
  AuM managed in Switzerland grew by 18.3% in 2021 to a record of CHF 3.30 trillion due to high net inflows and strongly performing financial markets.