Asset management industry must adapt

A survey has revealed that due to a ‘triple whammy’ of challenges this year, asset managers must adapt to cope with these new threats.

The challenges include a growing threat from disruptive technology, the continuing barrage of regulation and general market turmoil, according to the survey carried out by investment fund software firm Multifonds.

The survey was carried out in March 2016 and received 125 responses from the global asset management industry. Over half (54%) of respondents believe a new game changing disruptor, such as Amazon or Google, will enter the market in the next two years.

In terms of regulation, Markets in Financial Instruments Directive II (MiFID II) is the regulation causing most concern among asset managers and administers, cited by over half of respondents to the survey, followed by Ucits V (45%) and the Alternative Investment Fund Managers Directive (AIFMD) at 31%.

These findings come at a time of increased market volatility, with statistics from the Investment Association showing a total of £463m (€598 million) was redeemed from UK funds in January 2016. This is highest level since the midst of the financial crisis in October 2008, as investors became seemingly unsettled by stock market volatility and concerns over the global economy.

“To cope with the looming ‘triple whammy’, the asset management industry needs to adapt quickly or risk disruption in a negative sense of the word,” said Keith Hale, executive vice president for client and business development at Multifonds.

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