CIO identified six important structural forces that are transforming the institutional investment ecosystem by changing asset management.
It is important for investors to understand how these trends could affect their ability to put assets to work and fulfill their obligations to the institutions and beneficiaries they serve.
Analysts and observers note a range of structural challenges facing institutional managers, including declining revenue yields for equity mutual funds and the rise of exchange-traded funds, difficult exits and other hiccups in private markets along with an evolving investor base, and continuing operating complexity–at least in part driven by the demands of technology–that is keeping cost pressures high.
Below you can see the forces and some indication of how they are affecting different kinds of institutional allocators and the intensity of that impact.
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Why ETFs Are Reshaping Investment Management |
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What the Push for Alts in Retail Channels Means for Institutional Investors |
Tags: Artificial Intelligence, Asset Management, benchmarks, securities regulation