As global leaders in providing services to the investment management industry, Deloitte’s investment management practice provides global resources and capabilities with a local presence, resulting in a clear understanding of each client’s specific market and way of doing business.
Challenges ahead in 2018
Let’s imagine for a moment that it is 2019 and we are looking back at the investment management (IM) industry. Is the competitive landscape for IM firms identical? Are the strategies and operating models of the successful firms the same as they were in the past? Have customers’ preferences changed? It is not likely that many people answer yes to all these questions. The industry will likely change, and some IM firms will likely make exceptionally good strategic choices that could enable success in a changing environment.
While some firms will likely thrive, overall the operating environment for the industry is likely to be difficult in 2018. Firms are expected to face margin compression as investors favor low-cost investment solutions, while at the same time the case for alpha may be difficult to make for many IM firms. Further, operating models at many IM firms could continue to face challenges while keeping pace with environmental changes driven by regulators, changing customer preferences, and advancing technologies.