Warning 'second wave' of asset management industry disruption to come from tech firms

Not meeting client's digital demands

Tom Eckett
clock • 2 min read

Rating agency Moody's Investors Service has warned the lack of innovation and long-term underperformance in the asset management industry has left the door open for tech firms to disrupt and gain market share.

In research looking at the global asset management industry, Moody's said the sector could expect a "second wave" of disruption following the adoption of low-cost index funds, which have already compressed fees and pressurised firms' business models leading to mega-mergers. Although US tech giants such as Amazon and Apple were unlikely to enter the market solely in the hunt for management fees, Stephen Tu, vice president and senior analyst at Moody's, said there were a number of ways these companies could disrupt, particularly from a distribution perspective, and "to facilitate data coll...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week