At a time of great change, asset management CEOs arguably have a greater role to play than ever. A mild recovery has lifted industry profitability since the financial crisis, yet challenges abound. Undoubtedly, the global pool of assets under management will grow in the years to come, but only those firms that adapt swiftly to the changing environment will benefit.
The industry’s mild resurgence has taken place against considerable headwinds. Nervous financial markets, new regulatory frameworks, more demanding investors and fierce competition for talent are all conspiring to make profitable growth hard won. Making progress in this environment takes considerable strategic foresight.
Leveraging our experience working with clients, we’ve identified nine key challenges that CEOs are facing as they battle to grow profitability. While the industry has opportunities for profitable growth, not all firms will succeed, given the magnitude of the change taking place. The firms that do so will be those that grasp what’s happening and then engineer the transformations that they need in order to adapt.
We explain the key challenges below and at greater length in our full report Top issues facing asset managers.
Taken together, these nine challenges present considerable risks and opportunities. Uncertainties abound, but you can be sure that the industry is in a period of transition that will take several years. As change continues, the CEOs of some firms will understand what’s happening better than others and act swiftly to benefit from them. These CEOs will guide their firms to become tomorrow’s AM leaders.