Irrespective of an asset manager’s market, segment or channel focus, the effectiveness and efficiency of its distribution function is critical to protecting existing assets and capturing new opportunities.
We predict that the supply-led, product-push distribution model which has served the industry well over many years is no longer the most appropriate in the prevailing and medium term environment.
In this second report in our Agile Asset Manager series, we focus on the way distribution functions are structured, organised and managed.
- Investors and intermediaries are coming under increasing pressure to justify the value-add for their charges.
- Power and influence is shifting to those nearest the client.
- Successful asset managers will be those that create deeper relationships with clients and intermediaries within their target market segments.
- Breaking down silos is critical to improve coordination, collaboration and effectiveness.
- Many leading asset managers already looking to rethink and reshape their distribution models in an attempt to regain ground.
- Client segmentation and improved coverage models are important to enhance quality and effectiveness.
- Deeper skills and capabilities are required to support richer and more relevant client-centric dialogues.
- The broader operating model must be aligned to enable and deliver the intended change.