The global investment management industry has entered a period
of unprecedented change and turmoil.
KPMG's Global Investment Management practice is pleased to
announce the launch of its survey report – Industry Insights
– A snapshot of key trends, issues and challenges facing the
investment management industry.
As the industry continues to work to put the global financial
crisis in its rear-view mirror, it finds itself forced to contend
with a host of challenges and threats from an array of external
forces. We sat down with more than 30 Chief Executive Officers from
a range of investment management firms throughout Europe. The
objective was simple: to understand what are the most important and
top-of-mind issues impacting the businesses of the industry's
leaders. The CEOs with whom we spoke indicated there are a number
of key issues that will require careful attention from the
investment management industry in the days ahead:
First and foremost is the continued instability on the
geopolitical scene. Whether related to the changes in the energy
sector, the political scene in the Middle East, developments in the
eurozone or the continuing rise of China, these developments will
have massive implications for the industry.
The continuing wave of regulatory change will also continue to
serve as a driver of industry transformation, including potential
changes in business models, implications related to Big Data,
possible divestitures and more.
The continued pressure on margins in the investment management
industry will likely lead to significant changes to industry
distribution models, with some of the CEOs we spoke with predicting
as much as 30 percent of the people/companies in the asset industry
today will disappear in the next 10 years.
In the `post-Madoff' era, investment managers will also be
pressured to reassesses their approaches to operational due
diligence, independent asset valuations and operational
transparency. At the same time, there will be increased importance
placed on the transparency of accounting practices as costs
continue to rise more quickly than revenues.
And finally, there's the clear and present threat posed by
technology companies such as Google, Facebook and a legion of
nascent start-ups looking to capitalize on technology to disrupt
the face of the financial services industry.
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