Defining future leaders in asset management

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Defining future leaders in asset management

Five strategic changes to reinvent asset managers

Secular catalysts such as technology, regulation and shifting buyer demands are presenting asset management firms worldwide with the greatest challenges they have faced to date. Investment performance is necessary, but no longer sufficient, for success. This paper outlines the bold, transformative changes in business models – including cost reallocation, streamlined operations, new technologies, differentiated investments and consumer-oriented brand attributes – that asset management firms will require to win in a rapidly maturing industry.

A reckoning driven by two primary factors

Asset management executives worldwide have long been beneficiaries of a lucrative and benign operating environment. The resulting broad growth rewarded asset managers, even those with functional deficiencies in strategic plans and operating models. Now, however, the industry faces a reckoning driven by two primary factors:

  1. Cost
    Shrinking expectations for capital market returns and slowing organic growth have combined to reveal the industry is not as scalable as previously believed, with expected fixed cost increases now outpacing likely future revenue growth. Asset management executives are reviewing how they allocate costs among current and future business lines.
  2. Consumers
    As individuals, rather than institutions, begin to provide the industry’s future growth, asset management increasingly looks like other consumer businesses — dramatically changing buying demands, desire for a strong customer experience, and fee sensitivity.

A select group of firms have created operating models that are growing faster than rivals. Few have done so using conventional business strategies or simply competing based on relative investment performance.

Survival of the fittest - Defining future leaders in asset management

Five strategic changes to reinvent asset managers

Download the paper 'Survivial of the fittest - Defining future leaders in asset management' and discover the five strategic changes asset managers should make to transform their businesses into powerful, efficient competitors.

  1. Strategic change 1: Optimize resource allocations
    Optimize resource allocations from outmoded businesses to new growth initiatives.
  2. Strategic change 2: Streamline operations
    Streamline operations for efficiency and onboarding new skills and technologies through M&A.
  3. Strategic change 3: Differentiate investment capabilities
    Differentiate investments with a broader array of active capabilities and strong product development processes.
  4. Strategic change 4: Digitize distribution
    Digitize distribution to reduce costs and more directly engage the client.
  5. Strategic change 5: Build a consumer-oriented fiduciary brand
    Build a unique consumer-oriented brand.

More information?

Do you want more information on asset management? Please contact Ivo van der Veen via +31 (0)88 288 6058 / IvanderVeen@deloitte.nl or Jan-Wouter Bloos via + 31 (0)88 288 2768 / JBloos@deloitte.nl.

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