Investment leaders need to transform their business
The investment industry is at crossroads and leaders need to transform their business models or they will put the future of their firms at risk, according to a study by the CFA Institute.
The “Future State of the Investment Profession” study aimed to provide a guide for business transformation with the use of a series of planning scenarios derived by combining megatrends impacting all industries.
The megatrends included technological advances, redefined client preferences, new macroeconomic conditions, different regulatory regimes reflecting geopolitical changes, and demographic shifts.
The CFA Institute also urged asset owners, asset managers, and investment intermediaries to focus in the future on professional transformation, fiduciary implementation, new skills for new circumstances, and stronger standards to restore industry trust.
According to the Asia Pacific respondents the ethical decision-making (38 per cent) and relationship building skills (40 per cent) were the most critical skills to future competitiveness.
Furthermore, 73 per cent respondents expected environmental, social and governance (ESG) factors to become more influential while 70 per cent said they expected a growth in importance of the financial centres in the Asia pacific region.
Also, 55 per cent said globalisation would offer new opportunities for the investment professionals while 18 per cent perceived globalisation as a threat.
At the same time, almost half of respondents viewed technology would present new opportunities while 23 per cent saw new technologies as threat.
CFA Society Sydney president, and Morningstar managing director for research strategy, Asia-Pacific, Anthony Serhan, said: “This study clearly shows a critical need for investment firms to adapt more quickly to new conditions”.
“In many cases, organisations need to adopt transformational change as we enter a new global investment era,” he said.
“As the drivers of this transformation, industry leaders hold our profession’s future in their hands.”
Recommended for you
With HNW investors representing the largest market for alternative assets, Praemium and CoreData research underscores why this presents a compelling opportunity for advisers.
Having completed the successful integration of Diverger, Count has upgraded its forecast for expected synergy benefits achieved by the acquisition by a third.
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
