Is differentiation the key to success for boutique asset managers?

Boutiques need to embrace technology

With increasing pressures on pricing, regulatory change and the need to keep pace with new tech-savvy competitors, the challenges for boutique fund managers have never been greater but, for those who can differentiate themselves from the crowd, there is an opportunity to flourish. So, what do they need to do to not only survive, but thrive in today's turbulent environment?

On the one hand, the prospects for boutique fund managers do not appear to be encouraging. In fact, in its recently published Annual Report, the Investment Association showed that, according to an industry survey, the number of boutique asset managers in the UK has fallen from 40 in 2013 to just 24 as of the middle of 2015. Buyers sell fund giants as boutiques gain popularity But the picture is not all doom and gloom as in many respects, the appetite to invest in boutiques remains healthy. If anything, the drastic decrease in available options will pose a problem for fund selectors wh...