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The Changing Tide: The Evolution of the Asset Owner Investment Model

As the investment insourcing trend develops, asset owners are increasingly outsourcing non-core functions to focus on the activities that add the most value.

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summary

  • The investment industry is in flux. Rising costs, new technology, global regulatory change and increasing consolidation have led many asset owners to look more closely at their organizational structures and investment processes.
  • For asset owners that manage their assets internally, or want to do so in the future, there are several considerations to take into account.
  • As the investment insourcing trend develops, asset owners are increasingly outsourcing non-core functions to focus on the activities that add the most value.

For asset owners that manage assets in-house or are considering doing so, outsourcing non-core functions means they don’t have to navigate changing regulatory regimes on their own, nor do they have to deal with the high costs of building back, middle, and even front office functionality, or recruiting the right talent for those components.

Partnering with providers who specialize in back, middle and front office services for in-house managed asset owners can make the transition seamless in the drive for operational efficiency and investment results.

 

The trend to bring asset management in-house continues to grow...

40%

of global asset owners increased the number of their in-house investment staff in the three years to mid-2018

19%

of global investors have increased the proportion of assets that are managed in-house

44%

of investors with assets above $25 billion are managing a higher proportion of assets in-house

From our analysis and a series of conversations with clients around the globe we have developed key considerations to guide asset owners who are deciding or have decided to bring their asset management in-house.

Download the full whitepaper to learn more.

 

our experts


Mark Austin

Head of UK, Institutional Investor Group

Dan Houlihan

Head of Asset Servicing, Americas

Melanie Pickett

Practice Executive, Head of Front Office Solutions

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