RETHINKING DISTRIBUTION

The asset management (AM) industry inWestern countries has seen tremendous growth over the past thirty years driven by strong local and regional economic developments, expansion in emergingmarkets and the sometimes artificial appreciation of underlying assets. However, global trends point towards a shift in this status quo in the future. The majority of these global trends, including the shift of economic power to emergingmarkets, the ageing of industrial countries, higher regulation, new technology and social media, are well recognised. However, their impact is not always clear. What do these trends mean for European asset managers and how do they need to adapt their distribution models to be successful in an ever more competitive landscape? To enable decision makers to reflect on how best to create competitive advantages in distribution, as well as developing a framework for discussion, we have set out a series of potential scenarios and their plausible implications. Our analysis is based on six key drivers of change which have the potential to change the asset management industry: Introduction

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Increase in regulation

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Increased exposure to emerging markets

3

Change in investor trust and loyalty patterns

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Focus on pension and retirement products and solutions

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Increased separation of alpha and beta and competition from other financial products

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Increasing use of technology to reach investors

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