Supply chain issues now affect three quarters of businesses or portfolio companies

• Ocorian research finds over two-thirds (64%) of asset managers, senior executives, wealth managers, and family offices are tackling this by strengthening their senior management teams

• Almost half (46%) are totally divesting from portfolio companies with supply chain disruptions

• Two-thirds (69%) are still positive about market conditions over the next 18 months

Supply chain issues are causing significant disruption and adversely affecting the vast majority of businesses and portfolio companies, but their outlook for the next 18 months remains positive, according to new global research* from Ocorian, the specialist global provider of services to financial institutions, asset managers, corporates and high net worth individuals.

Ocorian’s global research, carried out among asset managers working in alternative investments, senior executives at major companies, family offices, wealth managers, capital markets companies, and professional services providers, shows that over three-quarters (76%) say that supply chain disruptions have adversely affected their business or portfolio companies.

Among those experiencing issues, nearly two-thirds (64%) will change their senior management team to strengthen their ability to deal with these supply chain issues and over half (57%) will work with senior management of affected companies to address these issues. 

However, a high number are taking more drastic action - almost half (46%) of those surveyed said they are totally divesting from portfolio companies facing supply chain disruptions, and nearly two-fifths (38%) say they are reducing their stake in affected companies. Around a third (33%) say they are trying to offset disruption by looking for ways to reduce fees paid to suppliers who are experiencing supply chain disruption. 

Despite these supply chain challenges and disruptions Ocorian’s global research shows companies remain positive about market conditions. Over three-quarters (76%) of those surveyed said they have a positive outlook on market conditions over the next 18 months, including 7% with a very positive outlook. Around a quarter (23%) have a neutral outlook and just 1% have a negative outlook on market conditions over the next 18 months.

Charlotte Cruickshank, Global head of Onboarding and Solutions at Ocorian said: “Our research shows that recent global events have highlighted vulnerabilities in global supply chains which have impacted businesses and portfolio companies, with disruptions becoming so severe that many have decided to walk away and totally divest from affected portfolio companies. Reassuringly, working closely with or installing new skills into the leadership team is the preferred method to overcome these significant challenges.”

“Overall, the senior executives, asset managers, wealth managers, family offices, capital markets professionals and professional service providers that we surveyed hold a positive outlook on market conditions for the next 18 months which is encouraging to see.”

Ocorian’s newly launched Global Asset Monitor provides further in-depth insights into how public and private markets are evolving, highlighting key investment trends shaping the financial landscape. With private assets growing nearly three times as fast as public assets over the past 15 years, the report explores how investors are adapting their strategies in response.

Ocorian is a global leader in fund administration, capital markets, corporate and fiduciary services. Ocorian helps its clients solve complex problems so they can optimise investment performance and build their competitive advantage.

Ocorian is a global leader in fund administration, capital markets, corporate and fiduciary services. Ocorian helps its clients solve complex problems so they can optimise investment performance and build their competitive advantage.