Will Mayne | Broadridge

Will Mayne of Broadridge offers insight into the industry’s current trends, its performance over the last 12 months, and Broadridge’s strategies for developing analytics and market intelligence solutions

What are Broadridge’s strategies for developing analytics and market intelligence solutions for asset managers globally?

Broadridge provides the asset management community with both a holistic and granular view of the marketplace. This is delivered through a common platform for firms to navigate and quantify the complexities, with insights into industry dynamics and individual firm positioning. Listening to clients’ positions ensures we can empower the industry of tomorrow with first class data, analytics and insights.

How do you think the industry as a whole has performed over the past 12 months?

It was a truly standout year in 2017. At Fund Forum Berlin in June, we presented data which showed very strong organic growth—with good news stories for both the active and passive businesses of asset managers within Europe. This opened well but since has seen a slowdown in flows versus last year, and in May the 17-month stretch of positive net inflows in Europe came to an end amidst global geopolitical uncertainty.

Are there any trends that you are currently seeing in the industry?

Thematic strategies have been a key source of activity in Europe and Asia. This represents investors looking to identify the long-term persistent trends, which will drive equity valuations and change industries—funds focusing on themes like robotics, artificial intelligence and water scarcity are examples of this type of approach. For some investors, this is trying to look beyond any cyclical uncertainty around the economy and take a longer-term view on what future trends industries will be driven by in the future.

Another area within fixed income which was enormously successful in 2017 was the flexible or unconstrained fixed income sector. The persistent low interest rate environment has investors asking questions about what they need to do to eke out yield without greatly increasing risk. PIMCO benefited greatly from this trend in 2017. This year, however, has been rocky for this space, and the bond market faces challenges of a changing global rate environment. We believe that this space will continue to grow and develop as investors will continue to look for guidance from actively managed fixed income portfolios, and see the benefit of an unconstrained approach.

A particularly interesting area for the asset management industry this year is growth witness in multi-asset both from retail and institutional investments, what do asset managers need to understand in order to be successful in this space?

Whether it is launching a single flagship strategy, or positioning a new range for retail flows, there is no single path to success in multi-asset. However, blockbuster multi-asset winners have clustered in four areas:

Creating a strategy capable of consistently achieving an outcome (defined by risk, return and critically fees) that is aligned to either the broad investor universe, or the needs of a key channel, for example, Italian banks

Achieving this outcome through an approach that is equally as desirable and is considered robust by selectors/consultants, appreciating appetite for flexible asset allocation or alternatives, or anxiety about derivatives and leverage in certain cases

Laser focus client communications, clearly articulating the benefits and differentiators of the strategy, with empathy to the individual needs of each client group they are targeting—their story and the benefits for retail investors, the process/people and risks for institutional investors

Targeting the key channels for MA demand and forming relationships with the right partners for access to investors. For example, key regional distributors, global/local investment consultants.