In this report, the second of the Agile Asset Manager series, the focus is on the Evolving Distribution Models in Asset Management, in particular, the forces that are leading to a reshaping of distribution functions and how different elements of the model are changing.
Key points:
The report provide insight into the strategies being deployed and pose questions in relation to whether distribution functions are structured in the best way to optimise client proximity, if client relationships are being managed in the most effective way across the business and how managers are upskilling and enhancing capabilities.
To supplement and challenge our own thinking, we interviewed 25 CEOs and Heads of Distribution from a range of leading asset managers with US, European and Global footprints to gather their thoughts and perspectives.
Key findings from our research include:
Asset managers must create a distribution model which
best fits their business strategy:
The majority of interviewees recognised the need to
restructure and better organize their distribution models. Some are
moving to a global model, while others are choosing a regional
structure, with the decision often influenced by the diversity of
the manager's geographic footprint, target client segments and
organizational structure.
Breaking down silos is critical to improve coordination,
collaboration and effectiveness:
Many asset managers go-to-market and manage relationships
in a fragmented way. Much greater and tighter coordination across
and between distribution, portfolio managers and operations is key
to improving the quality and effectiveness of client coverage and
interaction.
Client segmentation and improved coverage models are
important to enhance the quality and effectiveness of client
interactions:
Client segmentation supported by appropriately
differentiated and structured coverage and service models has an
important role to play in driving consistency and focussing scarce
resource around clients based on value and opportunity.
Deeper skills and capabilities are required to support
richer and more relevant client-centric dialogues:
Many managers are increasing investment in technical and product
training, as well as broadening the development focus to cover
structured relationship development and sales skills.
The broader operating model must be aligned to enable
and deliver the intended change:
Processes, operations and IT, governance and incentives
must support the evolving model, drive improved efficiency, reduce
complexity and encourage increased internal collaboration.
Download the report here
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