Survival in a world of disruption. Diana Mackay, CEO, MackayWilliams LLP

Transcription

1 Survival in a world of disruption Diana Mackay, CEO, MackayWilliams LLP

2 AGENDA 1. Threats to the world we know 2. Survival tactics 3. Tomorrow s winners

3 What is the world we know? 8trn of assets 40bn of annual revenue 1.5m annual rev for every one of 27,000 funds Source: Broadridge. Data based on all long term funds domiciled in Europe, excl FoFs Fund Forum, Berlin 2

4 Regulation is changing the rules of the game Aim: Fairness & Effectiveness Fee pressure Passives Transparency Fund Forum, Berlin 3

5 A new world of myths and legends Passive will take over Winner takes all and the squeezed middle Digitisation robo-advice the threat of new players from outside the industry such as Google & Amazon Fund Forum, Berlin 4

6 Control of the value chain is shifting Manufacturer Intermediary Fund Forum, Berlin 5

7 Survival tactics

8 Passive Net Flows bn Tactic #1: Product Areas of product success: Active v Passive Strong passive Weak active Eq USA Bond Corp & HY Eq Global Strong active Strong passive 15 Bond Asia/EM 10 Eq Asia & EM Bond Global 5 Bond Core Europe/US Eq Themes 0 Eq Alternative Bond Alternative Mixed -5 Eq Europe Weak passive Weak active Active Net flows bn Equity Bond Mixed Asset Strong active Weak passive Source: MackayWilliams analysis of Broadridge data Fund Forum, Berlin 7

9 Tactic #2: Brand & differentiation Impact drivers in fund selection by year Brand preference Product quality Marketing & Comms Sales & Acct. Mgt Pricing & cost it is important for our clients to know the brand when we sell a product. France Discretionary portfolio manager Source: MackayWilliams Fund Brand 50, 2017 Fund Forum, Berlin 8

10 Tactic #3: Service Product is the traditional core of the asset management offer, but the future is in operating as a service industry Selling advisory services will play an important role for providers in the future, which is why we have to concentrate, expand and broaden our expertise. I hope for good co-operation with our fund providers in terms of joint customer events and presentations but also for an effective communication of investment ideas. Switzerland Discretionary portfolio manager Fund Forum, Berlin 9

11 Future leaders

12 1. The supermarket A product range that includes every style and strategy; A full passive menu, including smart beta; Optional D2C distribution options via robo-advice services; Strong consumer recognition via brand; Marketing focus on product range not single funds; Aiming for a top three position on selector buy lists. Fund Forum, Berlin 11

13 2. The storyteller A product range developed from and linking with a set of beliefs the client holds about the changing world; A brand aligned to ethical or belief structure of target clients; Strong focus on marketing to develop the necessary components of product stories. Product set clearly defined to meet identified client needs. Fund Forum, Berlin 12

14 3. The engineer Emphasis on alpha creation within its product range success will lie entirely in its ability to deliver performance for the right price; Building block products designed to be packaged by external intermediaries. Sub-advisory and institutional business welcomed; Sales strength over marketing strength. Brand relatively unimportant; Blockbuster funds and star managers an acceptable driver of new business. Fund Forum, Berlin 13

15 4. The brand house Incorporating some elements of supermarket, story teller and engineer; Budget focused on building brand through engagement with endconsumer but no D2C proposition; Focus on marketing tools for intermediaries in order to encourage end-buyer engagement with intermediaries. Fund Forum, Berlin 14

16 5. The trusted adviser Building proposition from existing consumer relationships; Creation of vertical structure to offer product manufacture and advisory services i.e. adoption of the whole value chain. Some featuring lower fee product propositions; Users of sub-advisory arrangements with engineer groups. Fund Forum, Berlin 15

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