Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. MONEY MANAGEMENT
November 01, 2017 01:00 AM

PwC: Technology, fee pressures to revamp asset management industry in 10 years

James Comtois
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Getty Images
    A horizontal image of a large office space shot from above. 10 office workers can be seen below. There are three large tables spread out across the room with multiple workstations.

    The global asset management industry will be substantially overhauled over the next 10 years, a new report by PricewaterhouseCoopers predicts.

    The report asserts that major changes will be made to fees, investment strategies, distribution, regulation and the way money managers interact with clients on a personal level.

    "If you look at the asset management business globally, you have several trends that have accelerated significantly," said John Siciliano, managing director and global strategy leader, asset management at PwC, in a phone interview.

    For example, with artificial intelligence, robotics, big data and blockchain transforming the industry, the importance of technology within the asset management industry has increased over the past few years. Money managers must embrace technology as it impacts all of its functions.

    "When I was in the business, technology was always seen as a back-office function," Mr. Siciliano said. "But this distinction between front, middle and back office is outdated and irrelevant. You have a seat at the technology table that is mandatory. And that's stepped up in the last few years."

    Mr. Siciliano also noted that more clients want multiasset-class solutions. "Style boxes have long since died," he said, adding that clients are looking for outcomes and solutions.

    Fee pressure is another area that is changing the industry. There is a continuing global transparency demanded by consumers and regulators around fees.

    Investors and regulators are pushing down fees. According to the report, institutional investors will pay more for alpha but not for beta. So as low-cost investment strategies gain market share and larger firms benefit from economies of scale, there will be further industry consolidation and new forms of collaboration.

    In addition, the old ways of hiring and nurturing people are changing. New skills are needed, and new employment models must be embraced. Hiring and retaining the best people will depend more on diversity and inclusion, and meeting the needs of the whole person, the report said.

    PwC's report states that assets under management globally will continue to grow at a rapid rate. PwC estimates that by 2025, AUM will have risen to $145.4 trillion from $84.9 trillion in 2016, with fewer firms managing more assets while charging lower fees. And some firms will have discovered new opportunities to create alpha and restore profit margins.

    Looking ahead, asset managers must have a clear strategy for the future and know how they can differentiate themselves from their competitors. PwC's report asserts that managers should reorganize their business structure to support those capabilities that differentiate them and cut costs elsewhere.

    The report is available on PwC's website.

    Related Articles
    Northern Trust, IBM create blockchain technology for private equity fund admini…
    AI key for third wave of hedge fund managers
    APG, PGGM complete blockchain testing for pension administration
    Traders have long way to go in use of AI, panelists say
    Commentary: The 'internet' of stocks and bonds
    Recommended for You
    Robert Sharps
    T. Rowe Price's Robert Sharps takes stock of volatility, markets
    Karen Lau
    Marathon adds co-leader of CLOs to corporate credit team
    Ant_Group_i.jpg
    Fidelity, BlackRock cut fintech giant Ant's valuation

    Reader Poll

    August 10, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Gaining Momentum: Where Next for Trend-Following?
    How Has 2022's Carnage Reshaped Global Stock and Bond Markets?
    Can Sustainable Labeling of Financial Products Prevent Greenwashing?
    Hedge Funds 2.0: Back to the future
    Is there a mid-cap gap in your DC plan?
    Why pursue direct lending in the core middle market?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    August 1, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit