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Growing demand for customised solutions
Almost three quarters of asset managers in Asia-Pacific said customised solutions for institutional clients is shaking up their business model, according to State Street Corporation.
This demand is also thanks to clients who are shifting portfolio management in-house at an ever increasing rate, State Street's "Opportunities for Optimism? A New Vision for Value in Asset Management?" report said.
The report found a major response to this challenge will be product innovation, with successful managers catching the next wave of growth by offering better services, solutions, and value to their clients.
Head of State Street Global Services for Australia and New Zealand, Paul Khoury, said "growing client demand for bespoke solutions requires many asset managers to adjust their business models, particularly as clients move in-house and insist on more personalised service to help them manage money."
Understanding risk and implementing strategies to manage it was also a major concern with 72 per cent of asset managers saying their client conversations focused heavily on the issue.
"Delivering greater value doesn't just mean achieving consistently high returns, it means forging closer partnerships with investors based on a transparent dialogue around risk and performance," Khoury said.
The report also found asset managers are positive about the opportunities for growth despite growing competition and potential disruption from new entrants to the industry such as technology or non-financial services firms.
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