Nearly eight out of ten investment managers are confident in their firm's business prospects over the next three years, a new poll from SEI shows.

The survey also found that even more than that, almost nine out of ten believe investment confidence levels are higher today than in the aftermath of the 2008 financial crisis.

The most frequent reason for the upbeat findings was brand strength, cited by a third of the senior executives surveyed by SEI during a recent conference in the US.

A quarter said that positive market strategies were the main reason why they are positive about the future, according to the wealth management and technology firm.

For the small minority of managers expressing concern, weak distribution strategies and resources were the most commonly mentioned reasons.

“While the markets remain somewhat volatile, managers are seeing investor confidence grow, which gives them greater business optimism and that leads to more business investment,” said Ross Ellis, managing director of knowledge partnership at SEI.

Institutional more popular than private client channel

SEI found that many executives are also putting their money where their mouth is and investing in their businesses. Just under half of those polled said that they will invest in marketing and distribution over the next 18 months, up from a third in 2011. A quarter said they will invest in operations and technology, while 10 per cent are looking to boost their portfolio management capabilities.

In terms of specific strategies, more than eight out of ten managers believe that firms managing active alternative strategies have the best prospects for asset growth over the next three years, while only 15 per cent of respondents named firms managing active long-only strategies.

On the subject of client segments and distribution channels, just 8 per cent said that the high net worth segment present the best business opportunity over the next 12 to 18 months. Just under 70 per cent named institutional channels, followed by new assets from retail channels at 17 per cent.  

A third of participants see economic uncertainty as the most significant challenge the industry faces, while almost as many cited geopolitical uncertainty, and one in five regulatory requirements.