There are four issues facing
managers and 2018 is likely to be the year that
either they will be forced to act, or be subject to
M&A to maintain a market presence.
Low-cost passive products continue to
gain popularity and make inroads, regulatory
burdens are rising thus raising costs,
technology is promoting transparency and realtime
competition, and the threat of a broad market
turn is now a real consideration.
Independent managers are best placed to weather the storm
given their low costs, however, bank and
insurance-owned managers will need to cut
costs by either scaling up, specialising, or looking
to M&A for future survival.