- Agile asset managers are more likely to outmanoeuvre and outperform the competition
- Report based on in-depth interviews with 26 CEOs, 5 CFOs and 6 COOs from leading asset managers in Europe
Asset management CEOs believe their organisations will need to become more agile if they are to remain relevant to clients and grow profitably.
A new KPMG report, entitled The Agile Asset Manager, outlines how agility can play a crucial role in helping asset managers outmanoeuvre and outperform the competition. The report, which is based on in-depth interviews with 26 CEOs, 5 CFOs and 6 COOs of leading asset managers operating in Europe, identifies why agility is a critical competence to develop now, and how it can be created and deployed to address the top strategic challenges facing asset managers.
- The key findings in the report include:
- The CEO and leadership team have pivotal roles to play in creating, deploying and cascading agility down through the business for the benefit of clients and the organisation
- Agility around clients, products and markets is created primarily in the operating model of the organization
- The sources of agility are highly interdependent and value can be enhanced by exploiting the linkages
- There is no universal model. Asset managers must blend the sources and deploy them in a manner that fits with their strategic and financial objectives
- Agility can be stored, often at low cost, and deployed when required
Nicholas Griffin, European head of financial services, transactions and restructuring at KPMG, commented: “There is undoubtedly a new competitive dynamic emerging in the asset management industry as it rebuilds itself following the financial crisis. CEOs are focused on a wide range of strategic challenges and notably on improving margins and return on investment. Agility will be required to deal with these challenges and opportunities irrespective of the asset manager’s ownership model, size or complexity, with agile asset management organisations more likely to outmanoeuvre and outperform less agile competitors.”
- The report also identifies the top 10 strategic challenges mentioned by the CEOs of the asset managers:
- Increasing margins and return on investment for shareholders
- Restoring trust with clients
- Diversifying the product set and providing solutions
- Expanding internationally
- Attracting and retaining talent
- Increasing third party assets (insurers)
Nicholas Griffin concluded: “The focus of asset managers over the next few years will continue to be on the reshaping, refocusing and restructuring of business, operating and management models. Much of this will be organic but we expect to see an increase in the level of M&A activity as various players use transactions to reinforce and accelerate the execution of their strategies.”
Notes to editors
About the report:
KPMG conducted in-depth interviews with 26 CEOs, 5 CFOs and 6 COOs of leading asset managers in Europe between April and June 2011. The businesses included global, regional and national players that are independent, bank-owned or insurance-owned and both traditional asset managers and hedge fund managers participated.
The executive summary is now available with the full report due in August 2011.
About Nicholas Griffin:
Nicholas is a partner and head of financial services, transactions and restructuring, KPMG Europe LLP. He has worked extensively with CEOs and top management teams of asset managers on a wide range of strategic, transformation and transaction related issues.
KPMG’s global asset management practice consists of 3,500 professionals in 150 countries providing Audit, Tax and Advisory services to clients across the industry.
Being one of the largest networks of asset management specialists we are able to offer advice to asset management businesses based on in-depth industry knowledge and an intimate understanding of our clients’ business activities and strategic goals.
Our specialist advisory practice provides objective advice to CEOs and management teams on complex and critical issues around strategy, transactions, restructuring, performance, technology, risk and compliance.
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