Investment Management

Traditional asset management firms and their related products remain under pressure due largely to continued market volatility. Asset prices remain below their peaks; traditional investment funds continue to fight the view that they are becoming commoditised and regulatory change continues. Managers need to be clear about how they are tackling these and other emerging threats and opportunities.

Risk

The changing nature of the markets, regulatory scrutiny and increased transaction activity has led to the need for clearer and improved risk management and governance practices.

Underlying this is the danger of severe reputational damage if significant events or activities are not dealt with appropriately.

Restructuring

Managers can use restructuring as a route to growth. Mergers, for example, create the scale needed to distribute low-cost products or fill in product ranges with high-alpha strategies.

Alternatively, there are specific opportunities for growth in lower-risk products such as bond funds, exchange traded funds and some of the simpler higher-risk products.

Tax

Tax authorities across the globe are seeking investors’ identities (e.g. the US FATCA provisions in the United States and the Common Reporting Standard by OECD), raising tax rates and questioning long-established holding structures.

They are reinforcing all of this with increased audit activity.

Managers must respond by improving their tax functions.