Driving growth beyond 2020 requires more than finding new streams of revenue or reducing costs. In a contracting market, the most successful asset managers look at their operating models from the perspective of their whole office, seeking holistic changes that enable growth.
As these managers dedicate more of their resources to core investment activities, they have turned to outsourcing non-core activities. By choosing the best partners for their investment processes, they build an ecosystem that integrates technology and capabilities across the entire investment lifecycle.
As firms increase their distribution, they must have a well-researched plan that considers investor preferences and their products’ suitability for each market.
It is more important than ever to integrate distribution into their operating model and to understand the needs of the target investor. It is also vital to have a global model that gives investors timely access to their data in their local time zone and language.
Managing regulatory change
Regulation continues to evolve, and asset managers must be able to adapt quickly. For example, after recent events, regulators are increasingly focusing on operational resilience and being able to maintain services during times of crisis and volatility.
Then there are the differences between markets. A global product increases the complexity of what needs to be done from a regulatory perspective. Work with a partner with global scale that can help meet those obligations while navigating the regulatory environment.
Asset managers are facing multiple cost pressures. Areas like data management, back- and middle-office operations, and reporting require investments in both technology and people and can are often done more efficiently through outsourcing.
Asset managers also seek outsourced providers to gain greater scale, flexibility and speed to market. Outsourced trading, for example, can help improve margins, streamline and future-proof operations and enhance governance and control.
Technology and data management
Technology is changing nearly every facet of our industry. The move toward a digital world will make processes faster and create better ways of doing things, but it can be resource intensive.
Firms should proactively think of how to streamline and future-proof their operations, and leverage technology to suit their business goals and objectives. Outsourced providers can give managers access to digital tools that automate workflow and provide information at their fingertips.
Asset managers will continue to face new challenges in growing their businesses in the coming years, particularly when facing existing margin pressures and a contracting market.
The managers that view their operations holistically as a whole office, rather than in silos of front, middle and back, have an advantage. They can more clearly see where it makes sense to outsource services that aren’t core to their investment processes and where leveraging next generation digital technology can boost automation and improve decision-making.
To learn more, read our full paper or contact your local Northern Trust representative.
Confidentiality Notice: This communication is confidential, may be privileged, and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender as soon as possible. All materials contained in this presentation, including the description of Northern Trust, its systems, processes and pricing methodology, are proprietary information of Northern Trust. In consideration of acceptance of these materials, the recipient agrees that it will keep all such materials strictly confidential and that it will not, without the prior written consent of Northern Trust, distribute such materials or any part thereof to any person outside the recipient’s organization or to any individual within the recipient’s organization who is not directly involved in reviewing this presentation, unless required to do so by applicable law. If the recipient is a consultant acting on behalf of a third party client, the recipient may share such materials with its client if it includes a copy of these restrictions with such materials. In such event, the client agrees to comply with these restrictions in consideration of its accepting such materials.
© 2020 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to expert, institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors. For legal and regulatory information about our offices and legal entities, visit northerntrust.com/disclosures. The following information is provided to comply with local disclosure requirements: The Northern Trust Company, London Branch; Northern Trust Global Investments Limited; Northern Trust Securities LLP. Northern Trust Global Services SE, 10 rue du Château d’Eau, L-3364 Leudelange, Grand-Duché de Luxembourg, RCS B232281; Northern Trust Global Services SE UK Branch, 50 Bank Street, London E14 5 NT; Northern Trust Global Services SE Sweden Bankfilial, Ingmar Bergmans gata 4, 1st Floor, 114 34 Stockholm, Sweden; Northern Trust Global Services SE Netherlands Branch, Viñoly 7th floor, Claude Debussylaan 18 A, 1082 MD Amsterdam; Northern Trust Global Services SE Abu Dhabi Branch, registration Number 000000519 licenced by ADGM under FSRA # 160018. The Northern Trust Company Saudi Arabia, PO Box 7508, Level 20, Kingdom Tower, Al Urubah Road, Olaya District, Riyadh, Kingdom of Saudi Arabia 11214-9597, a Saudi Joint Stock Company – Capital 52 million SAR. Regulated and Authorised by the Capital Market Authority License # 12163-26 CR 1010366439. Northern Trust Luxembourg Management Company S.A., 6 rue Lou Hemmer, L-1748 Senningerberg, Grand-Duché de Luxembourg, Société anonyme RCS B99167. Northern Trust (Guernsey) Limited (2651)/Northern Trust Fiduciary Services (Guernsey) Limited (29806)/Northern Trust International Fund Administration Services (Guernsey) Limited (15532) Registered Office: Trafalgar Court, Les Banques, St Peter Port, Guernsey GY1 3DA.