Fintech and ESG will change the face of asset management

Half of assets under management by 2030 will belong to millennials and those in the so-called ‘Generation X’, meaning asset managers will have to adapt their offerings to suit customers’ social values, Luxembourg fund experts have said. The Association of the Luxembourg Fund Industry (Alfi) and business services firm Deloitte predict a boom in robo-advice and a change in tailored portfolios, and say these will also cause a shift in marketing strategies. In a report – ‘How can Fintech facilitate fund distribution?’, which is published by Alfi and Deloitte – the two organisation forecast a sharp move away from traditional investment in oil and gas, to clean-energy industries such as solar and wind as investors seek to align their investment portfolios with their social and economic values. Alfi and Deloitte also said millennials will have a more ‘do-it-yourself’ attitude to investing as over 50% of investors interviewed cited a lack of trust in advisers and a belief that better performance could be obtained from self-directed investments. This is driving the next generation of investors to turn towards robo-advisers who, according to the report, will manage 10-14% of assets in the US by 2025 – up from the less than 0.1% of the €29 trillion in assets there today. Denise Voss, chairman of Alfi, said: “These behaviours will be a driver for change and the investment management industry has a unique chance to respond to these positive opportunities.” ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.



Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.