2022: A critical year for growth and transformation for asset and wealth managers

Alpha FMC’s Asset and Wealth Management 2022 Outlook explores the headwinds that managers are facing because of Covid-19 and how they should respond to succeed this year

NEW YORK, Jan. 19, 2022 (GLOBE NEWSWIRE) -- Alpha FMC, the leading global management consultancy serving the asset management industry, working with 17 of the top 20 global asset managers by AUM, announced today it has published its Asset & Wealth Management 2022 Outlook. As the world tentatively emerges from the Covid-19 pandemic, the Outlook focuses on the key roles within asset and wealth management firms and highlights some of the priorities and challenges Alpha expects them to face in 2022.

Alpha has identified five major headwinds that these managers will likely face this coming year, including macro-economic factors, client demands, workforce changes, technology and data, and the competitive landscape. Written by a selection of Alpha’s 650+ global experts, the Outlook challenges firms to identify the right priorities and provides guidance on how they can best execute on those priorities in 2022.

“2022 will be a year where asset and wealth managers continue significant programs of change and transformation across their business,” said Joe Morant, Chief Executive Officer of Alpha FMC in North America. “Across the board, the industry face numerous challenges that could make 2022 difficult if not acted upon in the near team. The continued influence of the pandemic, inflation concerns and political instability all add to client demands which impact investor confidence, asset allocation decisions and margins. The asset and wealth managers who overcome these obstacles and execute flawlessly will seize the opportunities and find themselves ahead of the pack – well positioned to find success in the near- and long-term.”

Alpha’s 2022 Outlook focuses on the personas with whom Alpha works with daily, identifying key challenges each role will face while also providing clear guidance on how each can find success this year, for example:

Asset Management Personas:

  • Chief Executive Officer: In order to take advantage of new opportunities, CEOs need to establish a leadership model that sets clear strategic priorities and explains what this means for each function. They should also clearly articulate the firm’s place in the future ESG market landscape to meet growing client and regulatory expectations, but be cognizant of “greenwashing”. Of course, on every CEO’s mind will be the growing trend of M&A and industry consolidation and ensuring that firms on both sides of the consolidation trend are well positioned.

  • Chief Investment Officer: While CIOs are focused on performance, we expect to see greater collaboration between Investments, Product and Distribution to design and deliver the right asset class and solutions mix to attract and retain strategic clients. We also expect demand for more technology support – both to the traditional investments tool kit as well as modern experimental technologies such as alternative datasets, NLP, ML and automation.

  • Chief Data Officer: As CDOs come under pressure to demonstrate an ROI on data investment, we expect them to refocus on a generation of ‘data insights’ and innovation. This could be materialized by reducing market data costs, supporting simplification of the overall architecture/operating model, embedding ESG/RI data across the enterprise, and driving consistency across public and private markets.
  • Head of Distribution: On the sales side, distribution heads will continue to redefine their coverage models to target, engage and retain clients in the “new-normal”, especially continuing to evolve the traditional “internal / external sales” model in the U.S. to a more hybrid, digital world. In client service, continued scalability will be key – especially of increasingly complex servicing requirements and requests from key clients, set around a well-defined servicing and segmentation model. In marketing, enhanced connectivity with sales and service will be essential, and marketing may well pick up more direct ownership of client engagements across the lifecycle. Brand will also become a more important differentiator. All this will be enabled by enhancements to distribution intelligence, data and analytics.

Wealth Management Personas:

  • Chief Executive Officer: We expect CEOs to be concerned with strengthening the competitive positioning of their organizations due to an evolving client base with changing needs while keeping the costs in check. They will look to enhance and differentiate their value proposition, focusing on areas such as investment solutions (e.g., coherent mandate offerings), investments (e.g., ESG, private markets) and channels (e.g., multichannel).
  • Chief Operating Officer: 2022 will be about convergence. COOs have a mission to create global platforms through unified operating models, requiring strong vision and governance to align booking centers on “how we work” with the ambition to drive synergies and reduce operational risk. COOs will need to critically evaluate the heart of their technology to implement a consistent stack with a unique set of applications, resulting in IT-debt catch-up and data progression.

To read the full Asset and Wealth Management 2022 Outlook, including information on all 11 asset management personas and all three wealth management personas, click here or visit www.alphafmc.com for more information.

About Alpha FMC
Alpha FMC partners with today’s leading asset and wealth managers to think smarter and shape their businesses for the future. The Alpha team works with 95 percent of the top 20 global asset managers by AUM and is comprised of more than 650 global consultants working across five continents and more than 25 countries. Alpha shapes the industry by delivering expert knowledge and advice in critical business areas such as new generation operating models, digital transformation and new regulation management.

Visit www.alphafmc.com for more information.

Media Contact:
Kris Pfeiffer