Cheap, centralised administration and reporting functions will be essential for Nordic asset management companies that want to fight off international competition, according to a survey by Cap Gemini Ernst & Young in Stockholm.

Nordic asset managers need to review their entire cost structure and one solution is to streamline IT and back-office operations, which represent 29% of the total cost structure for large asset managers with more than €25bn ($23bn) in assets under management. For mid-sized firms with assets up to €25bn, the back-office cost amounts to 22% of total expenses, rising to 28% for small firms, the survey says.