Trends in the AM industry
20248 - Asset Management
Session 1
The size of the AM industry: overall
2
The size of the AM industry: net flows
3
Geographic breakdown of AUM and growth rates
4
Penetration of the asset management industry
5
Revenues and costs in the AM industry
6
Revenues and costs in the AM industry
7
AUM and revenues by product
8
Profitability and growth rates by product
9
Legacy products and prune rates
10
Largest asset managers by AUM in 2023
11
Trend 1 - Move from accumulation
to income and risk management
Demographic balance Italy 1962-2022
Year
Births
Deaths
1962
945.842
503.106
1964
1.035.207
488.601
1995
526.064
555.203
2022
393.000
713.000
12
Trend 1 - Move from accumulation
to income and risk management
13
Trend 2 - Separation of alpha and beta: growth of
passive and alternatives
14
Trend 2 - Separation of alpha and beta:
growth of passive and alternatives
• Expansion of ETFs: not only passive but quantitative
active strategies: smart beta, factor investing
• Expansion of alternatives: not only retail but also
institutional demand
• All alternatives progressively fall into regulated
environment and try to increase liquidity profile
• Growth of investment in private markets
15
Trend 2 - Separation of alpha and beta:
growth of investment in private markets
16
Trend 3 – Redesign of fee models
• Key regulatory innovations: Retail Distribution Review
and MIFID II
• Misalignment of distributors and clients objectives
• Solution: greater transparency and mandatory fee
disclosures
• Impact: potential higher growth of low-cost products
(ETF, passive instruments)
• Emergence of explicit advisory fees instead of
embedded ones
17
Trend 3 – Redesign of fee models
18
Trend 4 - Increasing pressure on unit
margins
19
Trend 4 - Increasing pressure on unit
margins
• Higher compliance and regulatory costs as a result of
increased supervision
• Know your customer and money laundering regulation
• Competition from new entrants: social media, technology
companies, payment servicing companies
• Higher product design cost as a result of the need to
innovate products
• Greater cost disclosure to clients will fuel fee competition
20