According to a survey by KPMG, asset management companies still have a positive outlook on the industry's prospects. 76% of the surveyed asset management CEOs express confidence in the industry's growth (80% for 2022), while 73% are confident in their company's growth prospects. Nearly nine out of ten CEOs (89%) expect their companies to experience growth in the next 3 years, similar to 90% in 2022. Meanwhile, the survey found that interest in mergers and acquisitions in the asset management industry is increasing. The demand for asset management platforms in the Asia-Pacific region continues to rise, coupled with the fact that the asset management industry in other emerging markets is still in its infancy, are two major factors driving the increase in acquisition intentions. The "KPMG Asset Management Industry CEO Outlook" surveyed 80 CEOs of asset management companies with assets of at least $500 million from Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK, and the US, to understand their views on business and economic prospects for the next three years. The survey results show that while CEO confidence in economic growth has slightly decreased compared to last year, the majority remain optimistic about the industry and the global economy. The survey found that political uncertainty has become the most worrying operational risk for asset management industry CEOs, with 16% mentioning this point, a significant increase from 4% in 2022. CEO concerns about interest rate risk remained at 15%. Asset management companies need to address higher financing costs while government bond yields and other low-risk investments have substantially increased, making it a challenge to offer investments with higher returns. The survey results also show that CEO interest in mergers and acquisitions is increasing, with 58% of CEOs expressing interest in mergers and acquisitions, while the proportion of CEOs not interested has decreased from 17% last year to 6%. 26% of asset management CEOs surveyed see attracting and retaining talent as their top priority, a significant increase from 17% in 2022. Additionally, there is still room for improvement in gender balance in the asset management industry, as only 11% of the 80 surveyed CEOs are female. Vincent Wee, Global Head of Asset Management at KPMG, said that the sharp rise in interest rates last year has made the investment environment more challenging, and CEOs of many asset management companies around the world are facing various uncertainties. However, capital and liquidity in the asset management industry remain abundant, with funds continuing to flow in. The changing political landscape and globalization bring both challenges and opportunities, so the industry needs to remain resilient and flexible in uncertain environments. KPMG's Victor Xu, Head of Securities and Asset Management in China and Hong Kong, said that asset management companies must compete for talent and develop business growth strategies. However, attracting and retaining talent is a difficult challenge. Demonstrating to the public that the asset management industry can play a positive role in society will help solve the industry's talent shortage.