The solution allows asset managers access to a single source of data and insights by pulling together product analysis with a consumer perspective, to help inform firms on fund distribution and regulatory compliance.

Holly Mackay, CEO of Boring Money, said: “Asset managers are struggling to find the information they need today, relying on distributors for incomplete data sets. The goal of this collaboration is to provide a clear picture of both the end customer and the products, and to benchmark the information against peers, enabling asset managers to provide independently sourced data to boards while also focusing on actionable improvements.”

As part of the collaboration, Broadridge will provide value reporting, fee and performance data while Boring Money will contribute end-investor demographic and perception data. The solution aims to help asset managers to better understand and service the retail investors that purchase their funds through intermediaries.

Devin McCune, vice president of governance, risk and compliance services for Broadridge’s distribution insights business, said: “The combined offering will provide insights into end investors’ product awareness, usage and sentiment, coupled with quantitative metrics, creating the most comprehensive solution possible for asset managers and fund boards.”

This article was written for our sister title Portfolio Adviser

BlackRock said that the JV brings BlackRock’s expertise in investment management, risk management, product expertise, access to technology and scale among other things, along with JFS’ local market knowledge, digital infrastructure capabilities and robust execution.

JFS and BlackRock plan to invest $150m (£115m, €135m) each in the JV – but they said both firms may invest more into the joint venture. Its launch will occur following regulatory sign-off.

“India represents an enormously important opportunity. The convergence of rising affluence, favourable demographics and digital transformation across industries is reshaping the market in incredible ways,” said Rachel Lord, chair and head of Apac at BlackRock.

“We are very excited to be partnering with JFS to revolutionise India’s asset management industry and transform financial futures. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India.”

“This is an exciting partnership between JFS and BlackRock, one of the largest and most respected asset management companies globally. The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products,” said Hitesh Sethia, president and chief executive of JFS.

“Jio BlackRock will be a truly transformational, customer centric and digital-first enterprise with the vision to democratise access to financial investment solutions and deliver financial well-being to the doorstep of every Indian.”

For more insight on asset and wealth management in Asia, please click on www.fundselectorasia.com

The 2023 global asset and wealth management report, based on PwC’s latest industry projections and a survey of 250 asset managers and 250 institutional investors, indicates that the industry is grappling with challenges such as digital transformation, shifting investor expectations and consolidation.

It revealed that, as a result of the challenges, 73% of asset managers are considering a strategic consolidation with another asset manager in the coming months to gain access to new market segments, build market share and mitigate risks.

The survey also found that firms are turning to technology to transform their business, with more than 90% of asset managers already using disruptive technological tools, including big data, AI and blockchain, to enhance investment performance.

Due to the pressures and the drive to deliver at scale, PwC expects that, by 2027, the top 10 largest asset managers will control around half of all mutual fund assets globally. This is up from 42.5% in 2020.

Also, the report predicts that assets managed by robo advisers will reach $5.9trn by 2027, more than double the figure of $2.5trn in 2022.

Adapt or fail

The report said that the drop in global assets under management (AuM) to $115.1 trn showed the greatest decline in a decade.

It is nearly 10% below the 2021 high of $127.5trn (£99trn, €116trn),

The survey pointed to inflation, market volatility and interest-rate movements as by far the biggest concerns for both investors and asset managers over the next 12 to 24 months.

PwC also predicted that AuM is expected to rebound by 2027, to reach $147.3trn, representing a compound annual growth rate of 5%.

Olwyn Alexander, global asset & wealth management leader at PwC Ireland, said: “Existential challenges are sweeping the asset and wealth management industry against a backdrop of social, economic and geopolitical disruption. The choice is simple – adapt to the new context or fail. Firms that effectively leverage technology such as generative

“AI and robo advisers; build meaningful inroads to new and existing customers; diversify their recruitment; and deliver exceptional client experiences will be well-positioned to not only survive but thrive.”

‘Revenues will bounce back’

Elsewhere, PwC reports that as the global economy heads back into growth, and inflationary and interest rate pressures ease, global asset and wealth management revenues will bounce back to reach $622.1bn by 2027, topping the record highs of $599.4bn generated in 2021.

The firm expects this increase to be led by a continued surge in private markets revenues, which will account for around half of global asset and wealth management revenues by 2027, up from 37.6% in 2020.

It anticipates that private markets, which represents 10.6% of AuM in 2022, will drive 49.7% of global revenues by 2027.

PwC also said that passives are set to drive just 6.4% of global revenues by 2027, despite accounting for 26.4% of global AuM in 2022.

John Garvey, global financial services leader for PwC US, added: “The rebound in equity valuations over the first six months of 2023 is a testament to the resiliency of the markets and the benefits of diversification. We’re in fact already seeing the emergence of a new breed of investment firm: AI tech-enabled, customer-focused and prepared to operate across a wide range of asset types, both within and outside traditional asset and wealth management.”

It added that, while some fund management firms appear to be maintaining a “good” standard of liquidity risk management, there was a “wide disparity” among companies in terms of compliance with regulatory standards, and that some firms in the review were found to have “inadequate” frameworks to mitigate risk.

For instance, the FCA said the basic tools required combat liquidity crises were largely in place, but that the full processes “lacked coherence” and were “not always embedded into daily activities”. It added there was often “insufficient challenge and escalation” when it came to vehicles’ liquidity, as many companies chose not to prioritise liquidity risk management as part of their corporate governance.

The regulatory body also said arrangements were typically put in place by firms to meet “large one-off redemptions”, but firms lacked the correct arrangements to combat market-wide or cumulative redemptions.

Camille Blackburn, director of wholesale buy-side at the FCA, said: “This review should serve as a warning to all asset managers that they need to get this right. We expect boards to discuss our findings and assure themselves that their firms are not among the minority with serious gaps in managing liquidity risk.

“It is vital the outliers take quick action. They risk regulatory intervention if they don’t take this opportunity to address weaknesses.”

Compatible with the launch of LTAFs?

Laith Khalaf, head of investment analysis at AJ Bell, said it is worth noting that while the FCA is urging fund managers to improve their liquidity management, the regulator is also in the process of launching Long Term Asset Funds (LTAFs) as a means for retail investors to buy into “highly illiquid assets”.

“The initial impetus for Long Term Asset funds came from none other than Rishi Sunak, in his former role as Chancellor,” he explained. “The not-so-subtle goal is to tap up the large amount of money sat in pension funds for investment in UK infrastructure and start-ups, to help boost economic growth and fund the transition to greener energy.

Khalaf added: “If it’s going to continue going down this route, the government needs to make absolutely sure it’s not opening retail investors up to extra liquidity risks simply so it can meet its own economic targets.”

For more insight on UK wealth management, please click on www.portfolio-adviser.com

Under the terms of the agreement and subject to local regulatory standards, BTG Pactual will distribute Impax’s range of Irish-domiciled Ucits funds to its clients in Latin America, which include institutional investors and financial intermediaries.

Impax’s range of Irish-domiciled Ucits funds includes five products: Impax Environmental Markets (Ireland) Fund; Impax Environmental Leaders (Ireland) Fund; Impax Asian Environmental Markets (Ireland) Fund; Impax Global Equity Opportunities Fund; and Impax Listed Infrastructure Fund.

This marks the first time that Impax has actively targeted the Latin America region.

BTG Pactual US Capital is a subsidiary of Banco BTG Pactual, a d financial services global company with more than 6,000 employees and which has extensive presence across Latin America.

Paul Voûte, head of distribution for Europe and Asia Pacific at Impax, said: “BTG Pactual is one of the largest independent financial institutions in Latin America, with considerable reach among asset owners in the region. BTG’s deep distribution capability and established network makes it the prefect partner to help us launch Impax’s products into Latin America.”

Will Landers, head of third party distribution at BTG Pactual, added: “We’re very pleased to be bringing Impax’s UCITS funds onto our platform. There is considerable interest in the areas in which Impax specialises, including environmental markets and the broader idea around investing in the transition to a more sustainable economy.”