Traditional investment management

Investment management business models are under pressure. Falling asset prices and a preference for simple, low margin products is putting pressure on costs.

Governance & risk management

The creation of ever larger and more complex investment management businesses has increased the risk of governance and risk management breakdowns. Underlying this is the danger of severe reputational damage.

Growth

There are specific opportunities for growth in lower risk products such as money market and bond funds, in more transparent products such as Exchange Traded Funds and in some of the simpler higher risk products.

Human capital

With profitability under pressure, thought needs to be given to how performance can be appropriately measured and retaining the best people may entail creating a new set of benchmarks.

Market reporting

Funds are being challenged to improve transparency around fee levels and performance. Greater standardisation is needed to ensure trust.

Regulation and compliance

Changes in regulation are affecting traditional investment managers, creating opportunities as well as challenges. Understanding emerging regulation can confer competitive advantage.