1.2.2 Pwc-Asset-Management-2020-A-Brave-New-World-Final
1.2.2 Pwc-Asset-Management-2020-A-Brave-New-World-Final
1.2.2 Pwc-Asset-Management-2020-A-Brave-New-World-Final
managers have afforded themselves little time to bring the future into focus.
But the industry stands on the precipice of a number of fundamental shifts that
will shape the future of the asset management industry.
To help asset managers plan for the future, we have considered the likely
changes in the asset management industry landscape over the coming years and
identified key gamechangers which will impact the competitive environment.
www.pwc.com/assetmanagement
Contents
Introduction 4
AM 2020: 18
Gamechangers that will redefine the industry
1. Asset management moves centrestage 19
2. Distribution is redrawn – regional and global platforms dominate 24
3. Fee models are transformed 26
4. Alternatives become more mainstream, passives are core and ETFs proliferate 28
5. New breed of global managers 31
6. Asset management enters the 21st century 34
A shared vision: 36
Wei and the asset management industry
Contacts 38
It’s March 11, 2020. As Wei boards her train in the suburbs of Beijing, heading for
her office in the capital of the world’s biggest economy, she checks her mobile device.
She has been sent a message from international dating company eMatch’s sister site,
eMatch Investments.
The technology-based financial adviser has analysed her financial strategy and automatically matched her dating style
with the funds and fund companies most likely to meet her future needs.
One of the recommended funds is the SearchCo Asset Management (SAM) Global 80 Big Cities fund, so Wei clicks on
her SAM app and plays a video that presents key information about the fund. California-based SearchCo, an internet
search engine used by more than half of the world’s population, moved into the funds industry in 2015, and by 2020 was
registered in more than 40 countries as an investment adviser. She clicks to select the fund and the fund is immediately
added to Wei’s eMatch Investments’ mobile account. The order and payment is handled by eCommerce.com, SAM’s service
provider in China. eCommerce.com started out as an internet commerce company in China until it decided to apply
its dominant position and sophisticated payment processing systems to other industries, including asset management
(AM). SearchCo bought a stake in eCommerce.com in 2017 to handle payments’ processing and transfer agency in the
Greater China region. As a result of its new collaboration with SearchCo, eCommerce.com by 2020 is starting to process
transactions in Europe and the US too. eCommerce.com sends Wei’s order to her chosen fund provider, based in Germany,
and deals with all the necessary back-office processes. Of course, Wei knows nothing of all this. She just expects that her
cash will buy units in her chosen fund and that by around 2030 she will have made sufficient return on her investment to
pay for her son’s university education in the US.
Amid unprecedented economic turmoil and regulatory change, most asset managers
have afforded themselves little time to bring the future into focus. But the industry
stands on the precipice of a number of fundamental shifts that will shape the future
of the AM industry.
The way many asset managers operate in 2020 will be significantly different
compared with the 2013 model. Our fictional investor, Wei, represents just one
example of how funds might be sold and distributed in 2020.
To help asset managers plan for the future, PwC has considered the likely changes in
the AM industry landscape over the coming years and identified key gamechangers
that will impact the competitive environment. This paper first presents how the
operating landscape for asset managers will change by 2020 and beyond. In the
second part of this paper, we discuss how asset managers may prepare for the
challenges these changes present and turn them into competitive advantages.
Disclaimer:
This paper makes a number of predictions and presents PwC’s vision of the future environment for the asset management industry.
These predictions are, of course, just that – predictions. These predictions of the future environment for the asset management industry
address matters that are, to different degrees, uncertain and may turn out to be materially different than as expressed in this paper. The
information provided in this paper is not a substitute for legal and other professional advice. If any reader requires legal advice or other
professional assistance, each such reader should consult his or her own legal or other professional advisors and discuss the specific facts
and circumstances that apply to the reader.
The rise in the volume of investable assets which has occurred over the last two or
The future is bright. three decades is set to continue to increase in the future and investable assets are
expected to be significantly higher in 2020 than today.
Few people in the asset
management industry Global AuM to exceed $100 trillion by 2020
The Global Financial Crisis (GFC) of 2008–2009 was a major economic event
would have shared this affecting millions of people, but only led to a temporary detour in the long-term
sentiment in 2008 or growth path for assets managed by the industry. They have continued to rise
and today, worldwide assets under management (AuM) total $63.9 trillion. Our
2009. Not many believed prediction is this will rise to around $101.7 trillion by 2020, a compound growth rate
it even as asset prices of nearly 6%.
recovered in 2010–12. The table overleaf summarises our estimates of global AuM by types of products
(mutual funds, mandates and alternatives) and by clients within the AM industry.
However, changing
markets and investor To predict AuM growth, we examined the correlations between AuM and a number
of economic factors over the past 13 years – including two financial crises (the late-
needs will combine 1990s’ boom-and-bust and the GFC). We found a strong correlation between nominal
to produce a positive gross domestic product (GDP) and overall AuM growth, especially relating to the
fund industry. We also analysed the main products offered by the AM industry and
environment and huge developments in institutional assets.
opportunities for asset
As global economies become increasingly integrated and interdependent, regional
managers through 2020 AuM is influenced by GDP growth in other regions. For example, changes in AuM in
and beyond. China can be caused by changes in US GDP. Therefore we, looked at the impact of
GDP growth in strong economies such as the US when forecasting regional AuM.
Our prediction assumes a normal development of the world economy. Based on IMF
predictions to 2018 and our own hypothesis for the period 2018–2020, we believe
nominal global GDP will increase by 5.15%1 annually between 2012 and 2020.
In addition to using the GDP, we supplemented our analysis with experts’ points of
view and specific industry trends. We also took the ageing population of European
and some Asian countries into account as well as the generational shift of wealth.
The sections below identify and describe the drivers for the powerful growth in AuM
in the years to 2020.
Source: PwC analysis. Past data based on Hedge Fund Research, ICI, Preqin, Towers Watson and The City UK.
Note: Differences in sums are due to rounding. Mandates exclude alternatives.
In addition to using the GDP, we supplemented our analysis with experts’ points of view and specific
industry trends. We also took the ageing of European and some Asian countries into account as well as
the generational shift of wealth.
USD Billion
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
0.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
In 2010, Asia ex-Japan’s weightage in the MSCI World Index was only 9%, while its
total contribution to GDP approximated 18%. By 2020, Asia ex-Japan’s contribution
to GDP could be well above 25%. As this becomes reflected in the MSCI World Index,
it will result in new and substantial money flows into the capital markets of the East.
These flows will be considerably enhanced by the likely internationalisation of the
Chinese renminbi by 2020, which will open up what will eventually become one of
the world’s significant AM markets.
Source: PwC analysis. Past data based on Credit Suisse Global Wealth Data Book, SWF Institute, The City UK, OECD and Insurance Europe.
Note: Differences in sums are due to rounding. The sum of AuM by clients does not equal the sum of AuM by products shown above due to double counting.
The sum of the assets of all clients will also include double counting as a part of the assets of Mass affluent and HNWI will be invested with insurance companies and
pension funds.
In 2012, the AM industry managed 36.5% of assets held by pension funds, sovereign
wealth funds (SWF), insurance companies, mass affluent and high-net-worth
individuals (HNWI).2 Our model predicts that by 2020 the AM industry will manage
$101.7 trillion of clients’ assets, implicitly assuming the penetration rate to remain
constant. However, given the AM industry is successful in penetrating these clients
assets further, we believe that the AM industry would be able to increase their share
of managed assets by 10% to a level of 46.5%, which would in turn represent a $130
trillion in Global AuM.
2 PwC analysis.
120 6.8%
100.4
100 1.3% 0.9
4.5
80 9.9% 10.1% 43.3
4 Mass affluent are defined as those having wealth between USD 100,000 and USD 1 million.
5 Source: European Environment Agency; OECD Development Centre; PwC analysis.
Notes: Data is forecast and was last uploaded by the European Environment Agency on 29 November 2010;
middle class is defined as households with daily expenditures between USD10 and USD100 per person in
purchasing power parity terms.
6 OECD 2010, Homi Kharas, The Emerging Middle Class in Developing Countries.
Mutual funds and mandates Figure 9: Global AuM projection for 2020
to grow in tandem
Mutual funds are expected to grow at AuM in USD trn = CAGR
an annual rate of 5.4% and mandates
120 6.0%
at an annual rate of 5.7%. Mutual fund
growth will be fuelled by the growing 101.7
100 1.4%
middle-class client base that is saving 13.0
for retirement and wealth accumulation.
80 16.8%
Mandates, on the other hand, will see 63.9
growth through institutional investors 59.4 6.4 47.5
60
such as pension funds, with the ongoing 5.3
9.3%
shift from pay-as-you-go pension systems 30.4
40 37.3 28.8
to DCs. Mandates will also swell as a 2.5 5.7%
result of the rise of SWFs and HNWI 20 18.7
5.4% 41.2
clients, who are accumulating wealth at 25.4 27.0
16.1
a fast pace. 0
2004 2007 2012 2020
n Mutual funds n Mandates n Alternative investments
Source: PwC analysis. Past data based on Hedge Fund Research, ICI, Preqin, Towers Watson, and
The City UK data.
below their pre-crisis Fund distributors will have stress on their resources in the years to 2020; therefore,
the skills required for an increasingly complex and resource-intensive distribution
highs – according to landscape will test the industry’s best. There will be a different focus for wealth
industry analysis – and it managers, mainly due to changes in baby boomers’ needs. Wealth managers will
have to deal with decumulation rather than accumulation of wealth, helping
is debateable whether they clients manage retirement lifestyles and managing wealth transfer to the
will have reattained these younger generation.
levels by 2020.
(EMIR), Packaged Retail With the banking sector more under control, regulators are turning their attention
to asset managers, scrutinising their culture, interactions with customers and
Investment Products effectiveness in implementing required regulatory changes.
(PRIPs), Markets in
This regulatory focus will continue to increase through 2020, with firms having to
Financial Directive make corresponding increases in compliance staff to cope with increasing regulator
(MiFID) II and III. demands and the challenges of implementing regulation effectively. The costs of
not successfully meeting these challenges are likely to be increasingly significant –
both in terms of monetary fines and reputational damage, both of which the
industry can ill afford.
The G-SIFI debate – whether and which asset managers and funds are systemically
significant – is only just getting started. By 2020 we will have a much better idea of
what additional regulatory challenges the largest asset managers may have to bear,
but expect it to focus on increased reporting requirements and better planning for
recovery and resolution, particularly where clients’ assets are at stake.
Increasing regulatory pressure to restructure the banking sector will play into asset
managers’ hands. As the deleveraging of banks continues from 2013 to 2018, in part
driven by the European Central Bank’s ongoing focus on stress testing the balance
sheets of Europe’s top banks, asset managers will continue to move into areas
traditionally dominated by the banks.
Alternative asset managers will continue to broaden their product ranges to include
primary lending, secondary debt market trading including distressed and non-
performing loans, primary securitisations and off-balance sheet financing.
The move of alternative asset managers into the finance space vacated by banks will
lead to a period of sustained product regulation. The early stages of portfolio and risk
disclosure which has begun with Dodd-Frank and AIFMD transparency reporting, will
be continued with shadow banking legislative initiatives from 2014 and 2016, and
will have become the norm across the globe by 2020. Only the plain vanilla managed
account will remain outside product regulatory reporting regimes. While the
developed world has been at the forefront globe as more countries introduce will be criss-crossed with a network of
of this product reporting, increasingly DC pension plans. Tax Information Exchange Agreements,
Asia will follow suit as it is indirectly which entwine all of the major offshore
imposed to all jurisdictions through A consistent campaign of anti-tax financial centres into the global tax data-
peer reviews. avoidance measures, driven by the sharing arrangements.
OECD since the Base Erosion and Profit
By 2020, technology used by regulators Shifting (BEPS) report in 2013 will see Asset managers will have to build
may enable real-time access to the asset managers operating in a world extensive ‘Know your Customer’ and
investment portfolios of asset managers, where country-by-country reporting anti-money laundering (AML) systems in
either via asset managers or from of profits, tax paid and employee order to capture the key tax data needed
their administrators. Real-time portfolio numbers is the norm. to be able to deal with automatic tax data
data will be cross-referenced to provision, not only to the tax authority
market data and activity to support As part of the response to BEPS, many where the manager and the fund reside,
regulatory oversight of market conduct offshore financial centres will raise the but also to each tax authority where
and product appropriateness. bar as to the level of substance that is investors reside. Local AML rules will
needed within their jurisdiction in order include tax avoidance (and indeed aiding
Full transparency over investment activity to access double tax treaties (DTT); this tax avoidance) as a money laundering
and products will exist at all levels; process commenced with Mauritius offence, so asset managers’ customer
there will be nowhere for non-compliant and the Netherlands in mid-2013. handling teams will be required to be
managers to hide as regulatory, tax and This has shone the light on the level trained to spot and test for investor’s
other information’s reciprocal rights of substance and related profitability wealth to determine it has been
will extend across the globe. Access to that asset managers have in offshore generated by tax avoidance.
portfolio-level data will become the financial centres. In reaction to this, asset
norm as institutional investors including managers will increase cross-border Sadly, little progress will have been made
pension funds, increasingly use portfolio passports and reciprocities and will in aligning tax systems, so asset managers
level data to manage their own risk levels have to decide in which key locations will have to grapple with a huge jigsaw
and for reporting to their own they will have activities. This will puzzle of tax residency definitions for
home state regulator. result in a consolidation of the number potential investors, as well as different
of jurisdictions from which asset bases of taxation of investment income
This need for greater portfolio-level and capital gains in each jurisdiction.
managers operate.
transparency started with European
insurers under Solvency II, but will The concerns that pre-dated the arrival Portfolio-level disclosure, investor and
spread to the US and Asia. of FATCA in 2014–15 will turn to regulator reporting and tax information
acceptance as first the EU adopts a more exchange all demand huge capabilities
In 2013, Switzerland joined South for massaging fund data. These pressures
comprehensive regime of tax disclosure
Africa and other jurisdictions in requiring all add to the huge technology and data
under an updated EU Savings Directive,
pension funds to provide detailed focus and spend, which will be crucial for
and then some other countries or country
reporting to their home regulator. This asset managers in 2020.
groups follow the US to put in place their
requirement will spread across the
versions of FATCA. By 2020, the globe
4. Alternatives become more mainstream, passives are core and ETFs proliferate
Historically, banks have dominated the financial landscape and have traditionally
Asset management has been innovators, as well as first movers. At the same time, insurance companies
have always enjoyed enviable asset flows, which have allowed them to create sizable
long been in the shadows captive AM divisions. Thanks to their sheer size and to their skills in lobbying, these
of its cousins in the institutions have had the ear of policymakers and have been able to have a voice in
the market structure and the political agenda.
banking and insurance
But their influence is expected to have diminished by 2020 and changing
industries. By 2020, it will demographics and markets will thrust the AM industry to centre stage. What will
have emerged definitively be the drivers of this shift in the balance of power?
from their shadows. First, regulation imposed in the wake of the global financial crisis (GFC) will
continue to provide a hindrance to the banks and insurers by forcing them to
abandon proprietary investing as well as other non-core businesses. The rising cost
of capital will severely curtail the ability of banks and insurers to provide and recycle
capital. We estimate that European banks alone have a capital shortfall of more than
$380 billion,8 amid the drive to deleverage. This will create a vacuum into which
asset management will step and place itself at the centre of efforts to reinvigorate the
world economy.
Second, as the world ages, retirement and healthcare will become critical issues
– as opposed to the looming concern of today. The speed of change over the next
generation is alarming: the old-age dependency ratio for the world is forecast to
reach 25.4% in 2050, up from 11.7% in 2010.9 Therefore, asset managers will need to
focus on longer term accumulation of wealth, and a broader mix of accumulation and
decumulation of their clients’ assets. As longevity rises, there will be a concurrent
increase in the costs of healthcare and AM clients will need to save more to pay for
healthcare, particularly in the US. Retirement is a particularly pressing issue in the
US, where 77 million Americans were born between 1946 and 1964.10
08 Source: PwC, De-leverage Take Two: Making a virtue of necessity, November 2013.
09 Source: ‘Old-age dependency ratios’, The Economist, 9 May 2009. Measures the number of elderly people
(65+) as a share of those of working age (15–64).
10 Source: Immigration Policy Center.
Population (billions)
Thirdly, asset managers can become
more important financial actors in
7 driving capital raising and deployment
required to meet the demands of
6
growing urbanisation and cross-border
5 trade. The world urban population
is expected to increase by 75% from
4 2010 to by 2050, from 3.6 billion to 6.3
billion. The urban profile in the East
3
will see many more ‘megacities’ emerge
2 (cities with a population in excess of 10
million). Today’s 23 megacities will be
1 augmented by a further 14 by 2025, of
which 12 will be in emerging markets.12
0
1950 1970 1990 2010 2030 2050
–– Urban –– Rural
Source: United Nations, Department of Economic and Social Affairs, Population Division,
World Population Prospects: The 2012 Revision, New York, 2013.
11 “Trends in Premium and Asset Allocations by TIAA-CREF Participants: 2005 – 2011,” TIAA-CREF Institute
Research Dialogue #112, 2013.
12 Source: United Nations, Department of Economic and Social Affairs, Population Division (2012). World
Urbanization Prospects: The 2011 Revision.
About InvestmentCo
InvestmentCo is an independent asset management firm responsible for the investments and savings of over 100 million
individuals and institutions across the globe. We currently manage RMB14.3 trillion in assets ranging from passive
mandates to real assets and private equity. Our core philosophy remains that of better serving our investors and the broader
community in order to better serve our shareholders.
At the same time, most of Latin America will have agreements that allow funds
established in one country to be distributed in another without the need for full
registration – and all the expense and resource this entails.
Meanwhile, the UCITS structure, which binds the European investment landscape
will continue to gain traction within Europe and in Asia and Latin America, where
it has already established strong roots. Reciprocity between the SAAAME markets
and Europe will be developing quickly by 2020, building on the reciprocity of the
AIFMD model, which allows non-EU alternative funds to be distributed in Europe.
Already by 2013, 70 memoranda of understanding for AIFMD had been signed by the
European Securities and Markets Authority.
13 Source: EFAMA.
PwC Asset Management 2020: A Brave New World 25
3
Fee models are
transformed
By 2020, virtually all major territories with distribution networks will have
Most markets today introduced regulation to better align interests for the end-customer, and most
will be through some form of prohibition on having the asset manager allocate to
operate with a model distributors as evidenced in the UK’s Retail Distribution Review (RDR) and MiFID II.
that embeds distribution This will increase the pressures of transparency on asset managers and will have a
substantial impact on the cost structure of the industry.
and management fees in
RDR was conceived back in 2006, based on a ‘fair deal’ for retail investors to provide
some shape or form and greater transparency and value-to-cost for the customer. Implemented in the UK
misaligns distributor in December 2012, RDR was designed to end the potential conflict of interest that
objectives with those of arose when investors used independent financial advisors to source funds. The UK
regulator believed some of these advisers were directing their clients to funds that
the investor. This may be would provide the largest commissions for the advisers. In short, investors were
through embedded fee not necessarily receiving the best investment advice. The new regulation increases
transparency by making firms outline the fees that an adviser is charging a customer.
arrangements, such as in
RDR is now spreading, particularly in Europe, but also in other regions. Versions of
Europe or front-end fees RDR have already been created in India and Australia, and are in the process of being
as in Japan. created in Switzerland, Germany, Italy and South Africa. We believe by 2020, RDR
or similar regulation on fee models and the related disclosures will apply to all major
markets including Asia.
• Investment firms will increasingly use different models for the mass affluent – it
will simply be too expensive for many firms to service retail investors, so they will
offer more self-directed services. They will instead move up the curve to wholesale
platforms and HNWIs.
• The mass affluent market will become increasingly self-directed, which will
benefit online direct retail platforms.
• It will drive a lower cost model across the AM spectrum, since a whole raft of
commissions will be taken out of the structure.
66.0 22.7
50.2
11%
6.4
22%
10%
13%
14 13.0
12
10 9.3%
8 3.8%
6.4
6 28.5% 5.3
4
2.5
2
0
2004 2007 2012 2020
Source: PwC analysis. Past data based on Towers Watson, Preqin, The City UK and Hedge Fund Research.
• Similarly, large alternative managers that aspire to global growth will need to fund
their expansion by tapping the capital markets, or through strategic relationships
with others. Their global brands won’t need to achieve the same global awareness
as the mega-managers, but will still need greater recognition in the major markets
and through major distribution channels.
The demand for a seamless, integrated and tailored solution for each customer will
Asset management is drive technology for asset managers in the future. There will be an emergence of
strategic technology activities, and by 2020 most global asset managers will have
a virtual business, but hired a chief digital officer (CDO) to lead these activities. Already, we have recently
operates within a relatively seen such appointments at a number of the top AM firms.
low-tech infrastructure. Currently, 40% of asset managers are not actively involved in social media, other
than hosting a website.15 Technology in the form of social media, mobile phones and
By 2020, technology will other devices will be pivotal in the collection and location of behavioural information
have become mission- that can be harnessed by asset managers to create appropriate products and reach
critical to drive customer more clients. At the moment, firms are adopting social media – the next step is social
listening. Through social media, firms will, in 2020, be able to identify an emerging
engagement, data mining client need through data mining and from what they see and hear in social media,
for information on clients then offer timely products and services. This can be achieved through the creation of
a digital intelligence infrastructure, which includes monitoring, dashboards, process
and potential clients, flows and integration into CRMs. The desired result is: more leads, more qualified
operational efficiency, leads and deeper engagement with existing leads, resulting in a tailored product for
the end-client.
and regulatory and tax
Big Data will become more important for asset managers to better understand their
reporting. At the same customers and align products, pricing, risk and financial data to smooth the flow
time, cyber risk will of information to the AM firm’s leadership and sales’ functions. The global cloud
computing market, for instance, will grow from $41 billion in 2011 to more than
have become one of the $241 billion in 2020.16 The influence of the retail sector, which has long understood
key risks for the industry, the importance of Big Data in responding to clients’ preferences, will pervade the
ranking alongside AM sphere.
operational, market and Asset managers will consistently deliver more operationally efficient organisations.
Technology will play a key role in cost efficiency by 2020, providing stronger investor
performance risk. management and CRM capabilities. With the increase in global access there will
be pressure on technology systems to provide accurate and timely information,
while meeting security and privacy needs. Technology will have the flexibility and
breadth to enable investor reporting as well as disclosure accuracy and completeness
for investors, regulators and tax authorities. This will facilitate compliance with
the plethora of overlapping tax and regulatory reporting requirements we will
15 PwC, #Social Media Studies, Asset Management in the Social Era, June 2013.
16 Source: Forrester, Information Archiving And Governance: A Market In Transition, August 2012.
see emerge over the next few years. resource risks and the scarcity of the knowledge and influence with banking
Technology is a necessary cost, natural resources in particular. As these alliances to provide compelling AM
reducing overall AM costs to AM firms, risks become more material to the clients propositions. A social media firm such as
particularly when using outsourced of AM firms, so AM firms will focus on Google, Facebook or Twitter or product
technology solutions. For service them too. Going forward, AM firms will providers such as Apple (through iTunes)
providers, the competitive landscape will begin to consider natural resource risks or Amazon could, for example, provide
be red hot by 2020. Only those providers in the same way as other risks they face. front-office services, and partner with, or
with the best technology offerings even buy, a back-office servicing firm to
and with the scale to keep investing to The demand for scale will attract large create an integrated AM structure.
develop new offerings will survive. and pervasive companies that currently
operate in other sectors. In China, this Overall, there will be a significant
With fees under pressure and new development is already evident. focus on technology by 2020 to make
performance uncertain, creating the In 2013, Alipay launched an online the best use of data and provide new
optimal infrastructure for front and money market fund, Tu’E Bao that now product solutions that are both tailored
back offices will be critical. This is makes Tianhong Asset Management Co. and interactive.
likely to involve closer integration with the second largest asset management
vendors and the technology to plug company in China. It was successful,
and play with a number of vendors. It is in part, due to the strong trust of the
not impossible to imagine mergers and general public, to being an affiliate of a
joint ventures between asset managers technology company and to providing a
and vendors. Cloud computing can tailored product.
significantly reduce fixed technology
costs, particularly as security concerns In a recent PwC survey, more than a
over cloud computing are assuaged quarter of asset managers were not sure
over time. whether the use of mobile technology
for distribution or communication would
Risk products focused on avoiding play a critical role in their business. We
reputational risk, in particular, will grow believe that the expectation gap between
from being fringe strategies to material customer needs and asset managers’
components of the portfolios of many slow take-up of technology could provide
institutional investors – particularly opportunities for further new entrants to
pension schemes and endowments. come into the industry. The most likely
There will be a steady change in product source of disruption will come from
demand and investment policies, due to social media or technology companies,
increasing consciousness about natural which may combine their reach,
like her around the world Equally, each asset manager must recognise the changing landscape and be ready
to actively embrace change in order to meet investors’ needs and to be successful.
depend on the asset Asset managers should consider each of the gamechangers above separately, but
management industry also recognise that they are interconnected. The response to them will require
considerable thought in order to create great strategy – there is no silver bullet to
to help them fulfil their building the successful asset manager of 2020 and beyond.
ambitions. The industry
The successful asset managers of 2020 will have already started to shape their
must respond to their responses to some or all of these gamechangers. Those that develop coherent
ambitions and needs. strategies and act with integrity towards clients over the coming years are
likely to build the brands that are not only successful in 2020, but that are still
trusted in 2020.
Editorial Board
Barry Benjamin Robert Mellor João Santos
Partner Partner Partner
PwC (US) PwC (UK) PwC (Brazil)
[email protected] [email protected] [email protected]
+1 410 659 3400 +44 (0) 20 7804 1385 +55 (00) 3674 2224