Northern Trust Survey: Asset Managers Pursue ‘Right Product, Right Fit’ Strategy to Drive Distribution

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[{"type":"text","content":"\nGlobal survey of 300 investment managers reflects importance of data quality to develop products that are targeted to unique investor needs.\n\n\n CHICAGO--(BUSINESS WIRE)--\nInvestment managers are prioritizing the quality and accuracy of their products to enhance the investor experience and grow their distribution in the next two years, according to a survey of 300 global asset management firms sponsored by Northern Trust.\n\n\nNorthern Trust today issued a white paper, The Next Chapter in Driving Growth in Asset Management 2024, that illustrates how asset managers are enhancing the investor experience through increased quality and accuracy, targeted distribution strategies, better data management and outsourcing.\n\n\nLess than half (46%) of respondents identified controlling costs as their top strategic priority in the next two years, while 72% chose enhancing quality and accuracy, improving the investor experience (70%), and expanding product set (60%) as their top concerns. The results marked a shift from manager priorities in Northern Trust’s prior survey in 2022, when just 45% of managers identified enhancing quality and accuracy as the top priority, behind efficiency and cost controls.\n\n\n“Asset managers are focused on honing their distribution channels, and having access to high-quality, consistent data is crucial in driving those decisions,” said Ryan Burns, Head of Global Fund Services (GFS), North America. “It’s important that managers have a deep understanding of their clients’ needs so they can find them the right product at the right time, because there is no one-size-fits-all solution.”\n\n\nThe survey, conducted for Northern Trust by WBR Insights, highlighted that 83% of respondents plan to change their product strategy in the next two years, with a focus on meeting diverse investor needs.\n\n\n“Managers who over the last few years have focused on removing cost from their operating models have recalibrated their focus toward their investors,” says Caroline Higgins, Head of Global Fund Services (GFS), APAC. “In the Australian market especially, managers are tweaking their strategies to service an aging demographic. As the demographics of investors change, they must be flexible with product offerings to meet the demand.”\n\n\nWhile managers continue to face cost pressures, the impact of T+1 and a challenging ...

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