83% of asset management firms’ CEOs, CIOs, directors of operations and senior executives from across the Apac, Emea and North America regions surveyed intend to adjust their product strategy in the next two years with a focus on meeting diverse investor needs. In the UK, the shift is towards leveraging new technologies.
The survey conducted by WBR Insights for Northern Trust has revealed evolving priorities within the asset management industry. Among the key findings, enhancing data quality and accuracy emerged as a top strategic priority for 72% of participants, closely followed by improving the investor experience (70%) and expanding product sets (60%).
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Despite this, only 46% identified cost control as their top priority, though nearly 70% explored product rationalisation, with 60% eyeing automation and technology for efficiency.
The survey also highlighted a shift in focus regarding ESG considerations. In the 2022 survey, there was a greater focus on ESG near the top of the list. In 2022, when firms were asked how they planned to increase distribution, 61% said they wanted to launch or increase their ESG options. In the 2024 version, only 36% plan to launch or expand ESG options for distribution, challenges such as data sourcing, fund performance and regulatory standards hinder progress.
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The shift in focus from cost control to quality and accuracy underscores a client-centric approach among asset managers, shared the researchers. With 83% planning to change product strategies, catering to diverse investor needs becomes paramount, they added. While cost control remains important, enhancing the investor experience takes precedence.
According to the researchers, this balance is sought through product rationalisation and technological investment, ensuring only successful products are available while meeting client expectations. Addressing data challenges is crucial, with 57% intending to engage specialised data service providers. According to the researchers, this highlights a growing reliance on external expertise to enhance data analytics capabilities and generate actionable insights.
