The asset owners’ conundrum
Insourcing of asset management
Insourcing asset management can also be motivated by external factors, such as regulator-driven consolidation
The level of interest around insourcing has risen amongst institutional asset owners, and there is more talk about whether or not to adopt an insourcing strategy, as well as how to find the best approach. Frontier’s Governance Advice, Risk, Decisions, and Strategy (GARDS) team completed detailed research on the insourcing trend earlier this year, publishing its analysis in March 2016. The most commonly cited driver for the change was cost reduction. While cost continues to be an important factor, we think the impetus behind the recent progression is a combination of a lower expected return environment and the increased scrutiny on external management fees—the latter likely exacerbated by the lower return environment and regulatory pressure.
Performance magazine issue 21, September 2016
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.