RETHINKING DISTRIBUTION

We identified twenty different scenarios by combining these key drivers. Based on in-depth interviews with a number of industry players (asset managers and distributors) we then assessed the most likely scenarios that couldmaterialise in the coming five to ten years and their implications on distributionmodels within the asset management industry. During our consultations with industry players there was unanimous agreement on almost all key drivers of change (with the exception of technology) with slight differences on the most likely scenarios and speed of impact on the industry. This report concentrates on the longer term changes affecting European asset managers distributing UCITS and Non-UCITS mutual funds within and outside Europe to institutional and retail investors. A number of drivers are already at work, ranging from tighter regulation within the AM industry to the rise of emerging markets. Some asset managers have already positioned themselves to profit from these shifts. Understanding the drivers of change and defining a clear strategic positioning and response will be key to success. A failure to do so could lead to a loss of positioning andmarket share over the long run.

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