The Future of Asset Management: What the Experts Say

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the future of asset management: what the experts say. page 1 of 4 what does the future of asset management look like? how much will artificial intelligence change business? what role will portfolio personalization play? exclusively for finews.ch four experts give their assessment. asset management is on the brink of a major transformation. with technological advances, especially in artificial intelligence, rising customer demand for sustainable investments, and stricter regulatory requirements, market players face growing challenges in the years ahead. additionally, the industry continues to experience intense cost pressures. a recent study by zeb reflects a similar outlook, as reported by finews.ch. what trends will shape the market? which strategies are likely to succeed? four experts offer insights. christian machts, head of central region at fidelity international. christian machts (image: zvg). how do you see the role of asset management in an environment of persistently low interest rates? in an environment where interest rates offer less and less of an investment alternative, the role for global asset management is becoming increasingly more important. customers are looking for ways to invest their money, and it is our task to create appropriate opportunities for every need and to provide high-quality results as well as service. which new investment strategies are gaining in importance? i am convinced that customers will look for solutions with an income character even more than before. this means generating current income from dividends or interest, worldwide and always keeping an eye on the risks. additionally, it involves turning new trends, particularly in the technology sector, into investable opportunities and identifying potential gains within the current tense geopolitical landscape, especially in regions like china and southeast asia. to what extent are technological developments, especially artificial intelligence and blockchain, changing the asset management industry? massive! digital assets offer us a completely new investment universe. this is accompanied by new investment instruments and, of course, opportunities. we gained experience very early on in the field of «digital currencies» such as bitcoin, and our customers are benefiting from this today. but the digital transformation does not stop in asset management itself either. ai and other developments are already in the process of making our business more efficient, faster and therefore more cost-effective. what opportunities and risks do you see in the increasing importance of passive investments compared to active investment strategies? passive investments will continue to grow, no question! as is often the case in a market segment that is maturing, there are more and more suppliers and products, more differentiation and falling prices. in the market for passive index trackers, we are already seeing ruinous price competition. at the same time, investors are opening up new opportunities between active and passive — the so-called active etfs. this trend will dominate the market for the coming years. a potential risk is that a rapidly growing product market could make it harder for customers to find the right product. how does the regulatory landscape – such as mifid ii and other regulations – influence the development of asset management? regulation has always been an essential factor in asset management and will remain so. with the upcoming initiatives around esg or mica on the topic of digital assets in the eu, there is already a lot on the agenda — and we are expecting more. in our business, we have to adapt quickly to new regulations and areas. how do you assess the trend towards alternative investments, especially in the areas of private equity, real estate and infrastructure? this is a growth area in which an almost unmanageable number of providers are penetrating. the products are comparatively complex and usually not liquid. nevertheless, the risk-reward profiles have an important function for customers. i expect further growth, an increasing opening towards private investors and, with the eltif 2.0, finally a standardised envelope in this area. for institutional clients, there is no way around alternative investments today. above all, it's crucial to identify the specific phase of market development for each area. this requires professional analysis. what role will portfolio personalization and the use of robo-advisors play in the future of asset management? this is a very important trend. clients increasingly seek customized portfolios, tailored to their specific needs rather than off-the-shelf solutions. achieving this requires advanced technology. robo-advice was and is a direction that has only been successful for a few providers, but the next wave has already begun and relies on many services and new media in addition to brokerage. this is promising. page 1 of 4. >: page 2 (page 2 of 4)" rel="next"> next &>&>.

Page 1 of 4

What does the future of asset management look like? How much will artificial intelligence change business? What role will portfolio personalization play? Exclusively for finews.ch four experts give their assessment.

Asset management is on the brink of a major transformation. With technological advances, especially in artificial intelligence, rising customer demand for sustainable investments, and stricter regulatory requirements, market players face growing challenges in the years ahead. Additionally, the industry continues to experience intense cost pressures. A recent study by ZEB reflects a similar outlook, as reported by finews.ch. What trends will shape the market? Which strategies are likely to succeed? Four experts offer insights.

Christian Machts, Head of Central Region at Fidelity International

Christian Machts (Image: zVg)

How do you see the role of asset management in an environment of persistently low interest rates?

In an environment where interest rates offer less and less of an investment alternative, the role for global asset management is becoming increasingly more important. Customers are looking for ways to invest their money, and it is our task to create appropriate opportunities for every need and to provide high-quality results as well as service.

Which new investment strategies are gaining in importance?

I am convinced that customers will look for solutions with an income character even more than before. This means generating current income from dividends or interest, worldwide and always keeping an eye on the risks.

«Digital assets offer us a completely new investment universe»

Additionally, it involves turning new trends, particularly in the technology sector, into investable opportunities and identifying potential gains within the current tense geopolitical landscape, especially in regions like China and Southeast Asia.

To what extent are technological developments, especially artificial intelligence and blockchain, changing the asset management industry?

Massive! Digital assets offer us a completely new investment universe. This is accompanied by new investment instruments and, of course, opportunities. We gained experience very early on in the field of «Digital currencies» such as Bitcoin, and our customers are benefiting from this today. But the digital transformation does not stop in asset management itself either. AI and other developments are already in the process of making our business more efficient, faster and therefore more cost-effective.

What opportunities and risks do you see in the increasing importance of passive investments compared to active investment strategies?

Passive investments will continue to grow, no question! As is often the case in a market segment that is maturing, there are more and more suppliers and products, more differentiation and falling prices. In the market for passive index trackers, we are already seeing ruinous price competition.

«For institutional clients, there is no way around alternative investments today»

At the same time, investors are opening up new opportunities between active and passive — the so-called active ETFs. This trend will dominate the market for the coming years. A potential risk is that a rapidly growing product market could make it harder for customers to find the right product.

How does the regulatory landscape – such as MiFID II and other regulations – influence the development of asset management?

Regulation has always been an essential factor in asset management and will remain so. With the upcoming initiatives around ESG or MICA on the topic of digital assets in the EU, there is already a lot on the agenda — and we are expecting more. In our business, we have to adapt quickly to new regulations and areas.

How do you assess the trend towards alternative investments, especially in the areas of private equity, real estate and infrastructure?

This is a growth area in which an almost unmanageable number of providers are penetrating. The products are comparatively complex and usually not liquid. Nevertheless, the risk-reward profiles have an important function for customers. I expect further growth, an increasing opening towards private investors and, with the ELTIF 2.0, finally a standardised envelope in this area. For institutional clients, there is no way around alternative investments today. Above all, it's crucial to identify the specific phase of market development for each area. This requires professional analysis.

What role will portfolio personalization and the use of robo-advisors play in the future of asset management?

This is a very important trend. Clients increasingly seek customized portfolios, tailored to their specific needs rather than off-the-shelf solutions. Achieving this requires advanced technology. Robo-advice was and is a direction that has only been successful for a few providers, but the next wave has already begun and relies on many services and new media in addition to brokerage. This is promising.