According to a new global research study from consultants CREATE, pension funds and fund managers need to better connect on tomorrow’ s products.
The research from the UK based think tank, sponsored by Citigroup and T. Rowe Price, says that unless there is closer dialogue and further innovation, investors may be unwilling to buy new products from their asset managers.
The research is compiled from survey and interview responses from three hundred asset managers and pension funds in 37 countries representing $30 trillion in assets.
“These principles will force an ever sharper focus on protecting and perpetuating core competencies,” says Todd Ruppert, the CEO and President of T. Rowe Price Global Investment Services Ltd. “They will also shine a spotlight on the efficacy or fecklessness of business strategy and its execution.”
“Asset managers who want to thrive will have to turn conventional wisdom on its head by growing the business while reducing costs through alliances with strategic partners who offer best-of-breed solutions,” adds Neeraj Sahai, the Global Head of Securities and Fund Services at Citigroup Corporate and Investment Banking.
“As clients are going back to basics, so are asset managers,” explains Amin Rajan, the report’s principal author and CEO of CREATE. “They will reinforce the craft nature of the industry as it revisits its time-honoured mission to deliver superior, risk adjusted returns.”