AM survey

Article

Asset Management Survey

The gold rush route for asset managers

Article

Asset Management Survey

The gold rush route for asset managers

Both the Asset Servicing and Asset Management industries experienced continuous challenges in recent years, driven by factors including fee compression, new product demand, stricter regulations and an ever-evolving economic climate.

In this context, Deloitte has launched an annual survey among the European investment management industry players to gain a holistic view of today’s market needs and challenges, in order to capture recent evolutions and anticipate future trends.

The 2019 edition, focusing on asset managers, welcomed the participation of 23 players located in Europe and the USA, who distribute in more than 30 countries worldwide. The sample of participants, totaling €8 trillion assets under management, provided a good representation of all asset manager size segments, with large players managing more than €500 billion and small niche boutiques managing less than €100 billion.

This year survey revealed three major challenges which profoundly impacted the whole asset management value chain:

Find the alternative track

Investors are increasingly investing in low-cost passive funds which have reached nowadays the same return than active funds. Asset managers’ choice to survive now lies between specializing on high-end niche markets to justify higher fees or gaining scale to provide passive investments at very low cost. To face the fee pressure resulting, most of asset managers are going towards alternative products (Private Equity, Real Estate, Private Debt).

of asset managers are offering to investors passive or active ETFs today.

of respondents expect to increase significantly their offering of active and passive ETFs over the next 3 years.

of asset managers are distributing Private Equity and Real Estate products today. The demand for this type of asset classes is expected to grow within 3 years, especially in 2 geographical area:

Engage in ESG – a game changer

However, investors are ready to sacrifice performance when they invest in active sustainable funds, which provide long-term impact and meaning to their savings.

of asset managers include ESG characteristics in their current portfolio, covered via all asset classes and specifically vanilla products

asset managers are using the top 3 below strategies in their Sustainable and Responsible Investments

of all asset managers intend to increase their proportion of Sustainable and Responsible Investments in the next 3 years

Data

remains the main challenge for asset manager when integrating ESG characteristics in their portfolios

of asset managers are using their own internal research team or/and relying on external data providers to collect the ESG data to support their decision-making process

of asset managers are using labels, certifications or flags to identify ESG investments

IS DATA THE NEW GOLD?

To build these customized portfolios with a thematic-approach, asset managers are trying to collect investors’ data, either depending on the data provided by their service providers or by increasing direct distribution to reach investors directly.

Asset managers are trying to improve their offerings’ customization through investors data collection

of asset managers consider investor information (age, wealth, etc.) and asset data (price, volatility, etc.) the most important data for their business

however this data lies within their service providers’ hands

of asset managers are dissatisfied with their service providers’ digital capabilities

As a result, some asset managers are considering to re-insource some activities thanks to technology

of asset managers would re-insource investor reporting or register maintenance if they had the appropriate technology in place

DATA COLLECTION THROUGH DIRECT DISTRIBUTION

of asset managers rely today on direct distribution

of asset managers cover more than 50% of their sales through direct distribution

of the asset managers are likely to increase their proportion of direct sales in the next 3 years

Contacts

Deloitte Luxembourg

Vincent Gouverneur
Partner – EMEA Investment Management co-Leader
Tel : +352 45145 2451
vgouverneur@deloitte.lu

Simon Ramos
Partner – IM Advisory & Consulting Leader
Tel : +352 45145 2702
siramos@deloitte.lu

Frank Lichtenthaeler
Partner – Strategy Regulatory & Corporate Finance
Tel : +352 45145 4387
flichtenthaeler@deloitte.lu

 

 
Deloitte United Kingdom
Deloitte Ireland

Tony Gaughan
Partner - EMEA Investment Management co-Leader
Tel : +44 20 7303 2790
tgaughan@deloitte.co.uk

David Dalton
Partner – Head of Financial Services
Tel : +353 1 407 4801
ddalton@deloitte.ie

 

Deloitte France
 

Yoan Chazal
Partner - Risk Advisory
Tel : +33 1 40 88 72 19
ychazal@deloitte.fr

 

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