Fintech and ESG will change the face of asset management

Half of assets under management by 2030 will belong to millennials and those in the so-called ‘Generation X’, meaning asset managers will have to adapt their offerings to suit customers’ social values, Luxembourg fund experts have said. The Association of the Luxembourg Fund Industry (Alfi) and business services firm Deloitte predict a boom in robo-advice and a change in tailored portfolios, and say these will also cause a shift in marketing strategies. In a report – ‘How can Fintech facilitate fund distribution?’, which is published by Alfi and Deloitte – the two organisation forecast a sharp move away from traditional investment in oil and gas, to clean-energy industries such as solar and wind as investors seek to align their investment portfolios with their social and economic values. Alfi and Deloitte also said millennials will have a more ‘do-it-yourself’ attitude to investing as over 50% of investors interviewed cited a lack of trust in advisers and a belief that better performance could be obtained from self-directed investments. This is driving the next generation of investors to turn towards robo-advisers who, according to the report, will manage 10-14% of assets in the US by 2025 – up from the less than 0.1% of the €29 trillion in assets there today. Denise Voss, chairman of Alfi, said: “These behaviours will be a driver for change and the investment management industry has a unique chance to respond to these positive opportunities.” ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.



May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.