Asset managers’ margins continue to erode and face a competitive future where best in class returns and traditional distribution strength are no longer sufficient to succeed. The dynamics of competitive advantage have changed.
These are some of the findings of an annual study of the global asset management industry published by the Boston Consulting Group. The report is the product of a survey that involved 135 asset managers located worldwide that represent more than 50% of the global assets under management. After providing a snapshot of the industry, the report focuses on the growing role of data in the industry and six fundamental capabilities that are crucial to achieve go-to-market excellence are identified:
- Market intelligence and strategic priority setting
- Product development and portfolio management
- Marketing and customer communications
- Sales platform management
- Performance monitoring
- Underlying organisational enablers
The study argues that data is relevant to all six components: “In many cases, the winning managers gain advantage by developing and deploying advanced capabilities in data-driven decision making […] such decision making is enabled by an enhanced user of big data, as well as digitally driven advanced analytics”.
Successful managers are expected to focus their data efforts on three areas:
- Marketing: metrics to measure the return on marketing investment
- Sales: analytics to track client web traffic activity and interests
- Customer service: client portfolio analyses to customise the sales communication
Currently, data practises are most advanced in the U.S., thanks to a large and uniform market. However, also non-U.S. asset managers are expected to invest in analytic capabilities to keep up with this data evolution.
You can download the full report here.
To learn about FundAssist data capabilities, do not hesitate to contact us.