New Thinking
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Adapting customer loyalty
Australia and the corporate governance experience
Australian and UK rail franchising experiences
Australian Regional Capacity Index
Australia's defence industry and the rise of Asia
Better business reporting – the journey continues
Big Data and why it matters
CHAFTA: Look to China for growth
Chinese Investment in Australia Demystified
Cloud – enabling business strategy
Corporate growth
Critical actions for a positive future
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Digital: A framework for the age of disruption
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Digital identity key for unlocking new business
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Financial reports de-cluttering in ASX200 companies
Financial System Inquiry – Innovation: Digital identity
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Financial System Inquiry – Superannuation and retirement incomes
Fixing Australia's naval shipbuilding industry
Future of investment management
Global shifts in defence and security
Harnessing the power of disruption
Here comes the M&A boom
Human services: rethinking regulation
Improving cities through urban renewal
Indirect Tax and International Tax – double the trouble?
Infrastructure trends
Leaving leadership development to chance is not worth the risk
Pricing: Defining the right strategy
Promising prospects in Australian corporate finance
Resource sector outlook
Risk transformation: Embracing conscious risk taking
Risk transformation: Engaging the first line of defence
Risk transformation: What makes a great CRO?
Road testing a public service reform agenda
Social media risks
Tax Reform: a call for fundamental change
Tax Reform: a new simplicity for fringe benefits
Tax Reform: a single tax collector
Tax Reform: stopping the fiscal drag
Tax Reform: property services tax
Tax reform – shaping the future
Tax transparency and morality
Technology and growth: working with the 'connected customer'
Technology's impact on investment industry
The constantly changing role of the CIO
The power of population
The private side of public investment
The Road to Paris
Transforming for consumer growth
Urban and regional growth: a smarter way
Utilities: technology is the future
Value of Audit
What is the future for government?
What a Japanese submarine option could mean for Australia
Future of investment management


The future of investment management

Have you ever considered what the investment management industry will look like in 2030? Nobody can predict the future, but one thing is clear – it will be different.

The wealth management sector is changing. Sooner rather than later, market participants will face a dramatically altered landscape.

While most people are aware of the broad direction of change across the globe, and many of the evolving themes have been incorporated into investment strategies already we believe the implications – for investors and asset managers alike – need to be more fully explored.

At KPMG, we believe that the future for the investment management industry is very positive and yet to capture the opportunities presented it will have to overcome unprecedented challenges.

The megatrends – the drivers of change

We have identified four global megatrends which are set to transform the investment management industry. They include changes to demographics, the environment, technology, and social values, behaviour and ethics. The spectrum of outcomes is broad and there is certainly no 'one-size-fits all' response.

John Teer
"The megatrends have the potential to significantly impact the investment management industry of 2030. However the highly interconnected and interrelated nature of these trends is likely to magnify the overall ramifications for the industry."
John Teer
National Sector Leader, Wealth Management
A shift in demographics will not only magnify the need for effective investment management but, over time, will radically change the nature of the challenge and an investment manager’s potential client base.

The environment
Resource insecurities are changing the nature of investment opportunities and demand for risk protection, as well as increasing the importance of socially responsible corporate behaviours and investment strategies.

Technological developments continue to act as major drivers of social, economic and environmental change, creating new opportunities and disrupting existing business models.

Social values, behaviour and ethics
Technology and the internet have combined to revolutionise how a large proportion of the world’s population interacts, communicates and behaves.

Implications for investment management industry

We believe the confluence of megatrends has the potential to have a profound impact on the investment management industry and that it will look very different in 15 years time. It is likely the industry will be significantly larger and have a more important role to play in society than today. However, many investment managers will need to drastically change their value proposition to remain relevant. We believe that there are seven core elements to capturing long term, sustainable and profitable growth:

#1 – Value chain
There are significant opportunities for investment managers to play a more important role in clients' lives and the industry's value chain.

#2 – Clients
The clients of tomorrow are likely to be very different from the clients of today, both in terms of who they are, where they live and what they expect from the industry.

#3 – Products and brands
Traditional products will increasingly become components of outcome-orientated solutions, niches will become more mainstream and aspects of investment theory may be called into question.

#4 – Market
Globalisation will continue to open up new opportunities for the industry and may necessitate a fundamental review of asset managers' market footprints and market entry strategies.

#5 – Technology
As the pace of change increases, asset managers will need to transform their operating models to create more flexible, efficient and agile platforms.

#6 – Governance
Asset managers need to create an organisational structure which can adapt and handle the complexities created by further geographic expansion.

#7 – People
The challenge associated with the search for and retention of talent will intensify.

We firmly believe that the megatrends will drive fundamental changes in what investors of the future need, want and expect. This cannot be ignored and is likely to require a significant reshaping of the industry's model. In our view, simply appreciating that this shift is taking place and pursuing a strategy of incremental change will for many not be sufficient.



Learn more about the global megatrends that are reshaping the investment management industry and the potential impact for your business by downloading Investing in the future.


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Investing in the future

Investing in the future
We examine the global megatrends reshaping the future of the investment management industry and the implications for your business.

Investing in the future: video

Feature image
Tom Brown, KPMG’s Global Head of Investment Management, discusses how global megatrends are impacting the investment management industry.

Financial Services Emerging Agenda

Financial Services Emerging Agenda
KPMG’s Financial Services leaders take a look at the trends and issues likely to impact the financial services industry.

Wealth Management

KPMG's Wealth Management practice offers a range of services to superannuation funds, life offices, employers and fund trustees.

Investment Management

We work with clients to gain an in-depth market understanding and develop strategies spanning fund life cycles from value creation to realisation.