The Future of Asset Management

2019 is set to be a defining year for the asset management industry. One year after the implementation of MiFID II – perhaps the most disruptive piece of regulation ever to hit the industry – the shift away from bundled offerings toward fee-based advice has already become evident in Switzerland. At the same time, new technologies are reshaping the sector, commoditizing large parts of the value chain, forcing incumbents to sharpen their value propositions.

But clients are also demanding more from their providers. Inspired by platform models in other industries like tech and e-commerce, clients have higher expectations of their providers with respect to costs, transparency, immediacy, and how they interact with their managers. With such megatrends in place, most players are battling with the effects of higher costs, lower margins, regulatory compliance, and increased client cost–sensitivity. Indeed, a veritable battle to tame operating expenses and reclaim ownership of the client relationship has erupted.

And although the industry still enjoys growth in assets under management, the future is likely to become increasingly turbulent to players ignoring the structural changes taking place in the market.

It is also in this context that we hope you enjoy reading this contribution to the dialogue and invite you to share your thoughts with us.