Change within Investment Management
| Date: | June 2009 |
| Author: | Catherine Doherty |
| Price: | £3000 to non-members of the Investit Intelligence Member service |
The events of the past two years have fundamentally altered the world of financial services and have brought back a huge emphasis on the privilege and duty involved in managing other people’s money. Whether it is a crossroads or just a bend in the road for fund managers, what is certain is that clients are standing bewildered on a traffic island in a fast-moving highway saying “who can I trust next”.
This report was written in the second quarter of 2009 and is mainly based on a series of interviews conducted with chief executive officers of investment management firms. The interviews were conversational and discussed the activities which had taken place in financial markets over the past two years, and their impact on investment management firms, clients and products.
The aim of the research was to gather and present a wide variety of views from different types of firms so our interviews included representatives from long only managers and hedge managers, from some of the largest bank and life firms to in-house schemes. We also talked to a range of managers in the Australasia region and we have included further market intelligence gathered as we established our Middle East office, and from our wide-ranging consultancy work.
The report analyses the impacts in three categories – impacts on the business itself, impacts on specific products and finally the wider-ranging impacts.
Table of contents
| Management Summary | 1 | |
| 1 | Introduction | 3 |
| 1.1 | Participants | 4 |
| 2 | Then and Now | 5 |
| 2.1 | ‘An unprecedented period of change’ | 6 |
| 2.2 | Received wisdom | 7 |
| 2.3 | The defining moment? | 8 |
| 2.4 | A bend in the road or a crossroads? | 11 |
| 2.5 | U/V/W vs ladles, bathtubs or porpoises | 13 |
| 3 | Business Impacts | 15 |
| 3.1 | Clients and Intermediaries | 16 |
| 3.2 | Liquidity | 19 |
| 3.3 | Transparency | 22 |
| 3.4 | Fees | 24 |
| 4 | Product Impacts | 27 |
| 4.1 | Absolute return | 28 |
| 4.2 | Index products | 29 |
| 4.3 | Cash management | 30 |
| 4.4 | Fund-of-funds | 31 |
| 4.5 | Asset allocation | 33 |
| 4.6 | Less complexity? | 35 |
| 4.7 | Back to the future? | 37 |
| 5 | Macro Impacts | 39 |
| 5.1 | Regulatory changes | 40 |
| 5.2 | Choose your parent | 42 |
| 5.3 | Size, brands and consolidation | 45 |
| 5.4 | Client-centricity | 47 |
| 5.5 | Changes to the competition | 48 |
| 5.6 | Implications for operations | 50 |
| 6 | Next Steps | 53 |
| 6.1 | Investigation and preparation | 54 |
| 6.2 | Single initiatives | 56 |
| 6.3 | External initiatives | 59 |
| 6.4 | Cross-business initiatives | 60 |
| 6.5 | Actions/initiatives lists | 62 |
| 7 | Index | 65 |
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