The Latest Headlines From Across The Wealth & Asset Management Sector - October

2022-11-02 |  Leo Chancellor

Welcome to our newsletter, in which we round up the latest wealth and asset management headlines. And there’s a lot to cover this month!

We’ll be taking a closer look at outsourcing retenders and acquisitions, as well as the latest findings on gender diversity in the industry.

We’ll also be highlighting some new developments from leading asset management players, and the current fluctuations in global markets. 

BNY Mellon to provide fully Integrated operating platform for Aviva Investors

Aviva Investors have struck a deal with BNY Mellon, who will provide front, middle, and back-office support. This will transform the firm’s operating model, and enable Aviva Investors to leverage BNYM’s recent innovations in their cloud-based data platform, Data Vault.

We’re seeing more and more retenders in the asset management sector going beyond the services already outsourced to third parties. This is because managers are looking to focus more resources on running money and product development, as they benefit from the significant investment that outsourcers have made into their operating platforms in recent years.

It’s a trend that isn’t confined to the larger managers; we’re seeing firms of all sizes considering their options, and there is arguably an easier case to be made for outsourcing for smaller managers.

Atomos lines up £1.4bn asset grab

The PE battle for assets continues to rage in the UK wealth management market. Atomos (newly rebranded from Sanlam) stated it has eight deals in the pipeline, and these deals promise to bring £1.4bn of assets onto the books.

As with all acquisitions though, the devil is in the detail. While an increase in assets is important, having a solid platform for consolidation is equally crucial.

Having navigated a large number of re-platforming and migration exercises for clients in the past, we understand the challenges all too well and how to navigate them. This process shouldn’t be underestimated, as the complexity of migration can quickly sink the business case for an acquisition.

Alpha Female 2022: Drive for gender diversity stalls

Citywire’s recent Alpha Female Report found that 90% of new fund launches have been carried out by men over the last 12 months.

While many asset managers have brought in initiatives to tackle gender imbalances in investment teams, it now seems that that progress has ground to a halt. The total number of funds managed by women began at 10.3% in 2016, and has only reached 12% over the course of seven years.

Italy, Spain and France lead the way for female-managed funds domiciled in Europe, while UK-domiciled funds fall 8 percentage points behind them on average. 

More developments...

How earnings downgrades could turn the tide for European tech

Earning downgrades could be a sign of recovery for European Tech in the first half of the new year.

While the Stoxx Europe 600 Technology index is down by 31% YTD, an opportunity to buy at low valuations could arise if earning downgrades become less aggressive.

Asset managers’ ESG efforts ‘failing to translate into action’

According to the annual Redington Sustainable Investment Survey, 43% of firms currently don’t have an exit strategy for companies with negative ESG performance.

The survey also found that the number of firms aligning remuneration policies with sustainable investment metrics declined from 70% in 2021 to 62% in 2022.

One in four ‘deep green’: Article 9 funds at risk of being booted out

An analysis for FE Fundinfo has suggested that more than one in four “deep green” ESG funds are at risk of being stripped of their designation.

This suggestion is based on the recent updates from the European Commission to reject ambiguity around Article 9 products. 

And in case you missed it...

Preparing for Consumer Duty

Now that the Financial Conduct Authority is updating regulations on Consumer Duty, asset managers will need to get prepared.

Read Mary Wong’s guidance on what the new regulations entail.

Thanks for reading. If you’d like to discuss any issues relating to the newsletter that are specific to you or your company, do get in touch

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