The asset management industry is going through significant structural shifts with lower revenue growth, shrinking margins, increasing regulatory requirements and technological disruption. There is also growing societal pressure to redefine the purpose of the industry and the way it seeks to create value for the wider range of stakeholders, which includes clients, employees, and shareholders as well as society and the planet.
At Willis Towers Watson, we believe successful asset management firms of the future do not dodge new industry realities, but embrace the opportunity to change the way they do things.
As a result, our understanding of what forms a sustainable competitive advantage for an asset manager of tomorrow now includes a much stronger focus on how asset managers incorporate sustainability, and how they evolve their cultural edge and emphasise inclusion and diversity.
In MIX- Manager Ideas Exchange 2019, our annual update to the asset management community, we shared developments in the evolution of our manager research process and set out our key research priorities for 2019. This was accompanied by a video where the research leads shared their focus for the year.
For an overview our research priorities watch the MIX video
The video is 10 minutes long, but you can skip to different chapters by selecting the topics you want to know more about it in the drop down menu on the right hand side of the video progress bar.
Video highlights:
Craig Baker, Chief Investment Officer: “The focus on short-term profit leads to value destruction for clients, employees, society, the planet and shareholders. Like many organisations, Willis Towers Watson wants to work with investment managers who are dedicated to creating a sustainable future.”
Paul Jayasingha, Head of Real Assets: “Sustainability increases returns, reduces risk, and has a positive impact on both people and the planet. Not only are we explicitly assessing the integration of sustainability consideration before recommending an investment manager to our clients, we have been actively seeking investment strategies that have an attractive return profile and have a direct positive impact on the environment and society.”
Nimisha Srivastava, Head of Credit: “We focus on three areas [when we do a cultural review]. Firstly, how a firm engages, retains and develops its talent. Secondly, how it measures and thinks about client satisfaction, and thirdly leadership. This is key to getting first two accomplished and deliver long-term success. Focusing on these will improve the outcome for clients and the end saver.”
Chris Redmond, Head of Manager Research: “Our mission is to deliver differentiated investment outcomes for clients, identifying opportunities and asset managers capable of delivering sustainable competitive advantage. More diverse teams are better teams, capable of delivering a sustainable competitive advantage. We are engaging all asset managers and asking them to reveal plans to improve diversity.”
