The asset management industry is in the midst of secular change that has been accelerated by the share gains of passive investing at the expense of active management. Both large and small firms alike must recognize this fact, embrace change and adapt their business models. The Legacy Model of high fees and cost structures with mediocre products will not survive.
Asset management firms need only look at the Amazon-effect within the retail sector to get a glimpse into the future. In order to compete with lower fees and the commoditization of investing generally, successful firms will need to embrace technology, big data and automation in all aspects of their business to better understand customer needs, reduce operating costs and drive efficiencies and ultimately grow revenues.
Goodwood’s Asset Manager Consulting practice delivers solutions and services that help firms identify and implement new go to market strategies.