For many managers of alternative investment firms in the US, brand stability plays a key role in keeping their businesses afloat amid volatile markets, a new survey by SEI shows. 

In a poll completed by senior executives, chief financial officers and chief operating officers present at the Annual CFO Forum for Alternative Investment Managers in New York, 63 per cent said they were optimistic about their firm's prospects over the next three years, with 50 per cent citing their brand's strength as the reason. 

In terms of the potential of different client segments, 74 per cent chose institutional channels as having the greatest opportunity for growth, particularly pension plans, foundations and endowments.

Top areas for business investment in the next 18 months came out as portfolio management, garnering 25 per cent of votes, and marketing and distribution, with 25 per cent. Only 4 per cent were planning to invest in investor reporting.

When asked about potential challenges to the industry, nearly 80 per cent said the cost of adhering to new regulatory requirements will negatively affect profitability, although they were split 50 per cent to 44 per cent as to whether the volume and appropriateness of new regulations were about right or far too burdensome. Another significant challenge comes from geopolitical and economic uncertainties, according to 63 per cent of voters, who expect these to remain high over the next 12 to 18 months.

"CFOs and COOs wear many hats, and through the increased use of technology and leveraging of third-party resources, they are better able to focus on what's important while keeping abreast of heightened regulatory requirements," said Ross Ellis, vice president and head of the SEI Knowledge Partnership, part of the investment manager services division. 

"Operational infrastructures can be bolstered, providing opportunities for enhanced transparency and internal controls that can improve client relationships and support growth," Ellis added.