Asset managers – the independent advantage vs corporate core

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.