CINXE.COM

<!doctype html> <html lang="en"> <head><script type="text/javascript" src="/_static/js/bundle-playback.js?v=HxkREWBo" charset="utf-8"></script> <script type="text/javascript" src="/_static/js/wombat.js?v=txqj7nKC" charset="utf-8"></script> <script>window.RufflePlayer=window.RufflePlayer||{};window.RufflePlayer.config={"autoplay":"on","unmuteOverlay":"hidden"};</script> <script type="text/javascript" src="/_static/js/ruffle/ruffle.js"></script> <script type="text/javascript"> __wm.init("https://web.archive.org/web"); __wm.wombat("http://www.bloomberg.com:80/trading-solutions/blog/asset-managers-will-fewer-better-2020/","20160711051037","https://web.archive.org/","web","/_static/", "1468213837"); </script> <link rel="stylesheet" type="text/css" href="/_static/css/banner-styles.css?v=S1zqJCYt" /> <link rel="stylesheet" type="text/css" href="/_static/css/iconochive.css?v=3PDvdIFv" />   <script type="text/javascript" src="//web.archive.org/web/20160711051037js_/http://fonts.gotraffic.net/xzr2dqj.js?v=1"></script> <script type="text/javascript">try{Typekit.load({ async: true });}catch(e){}</script> <meta charset="utf-8"><script type="text/javascript">window.NREUM||(NREUM={}),__nr_require=function(e,t,n){function r(n){if(!t[n]){var o=t[n]={exports:{}};e[n][0].call(o.exports,function(t){var o=e[n][1][t];return r(o||t)},o,o.exports)}return t[n].exports}if("function"==typeof __nr_require)return __nr_require;for(var o=0;o<n.length;o++)r(n[o]);return r}({1:[function(e,t,n){function r(e,t){return function(){o(e,[(new Date).getTime()].concat(a(arguments)),null,t)}}var o=e("handle"),i=e(2),a=e(3);"undefined"==typeof window.newrelic&&(newrelic=NREUM);var u=["setPageViewName","addPageAction","setCustomAttribute","finished","addToTrace","inlineHit"],c=["addPageAction"],f="api-";i(u,function(e,t){newrelic[t]=r(f+t,"api")}),i(c,function(e,t){newrelic[t]=r(f+t)}),t.exports=newrelic,newrelic.noticeError=function(e){"string"==typeof e&&(e=new Error(e)),o("err",[e,(new Date).getTime()])}},{}],2:[function(e,t,n){function r(e,t){var n=[],r="",i=0;for(r in e)o.call(e,r)&&(n[i]=t(r,e[r]),i+=1);return n}var o=Object.prototype.hasOwnProperty;t.exports=r},{}],3:[function(e,t,n){function r(e,t,n){t||(t=0),"undefined"==typeof n&&(n=e?e.length:0);for(var r=-1,o=n-t||0,i=Array(0>o?0:o);++r<o;)i[r]=e[t+r];return i}t.exports=r},{}],ee:[function(e,t,n){function r(){}function o(e){function t(e){return e&&e instanceof r?e:e?u(e,a,i):i()}function n(n,r,o){e&&e(n,r,o);for(var i=t(o),a=l(n),u=a.length,c=0;u>c;c++)a[c].apply(i,r);var s=f[g[n]];return s&&s.push([m,n,r,i]),i}function p(e,t){w[e]=l(e).concat(t)}function l(e){return w[e]||[]}function d(e){return s[e]=s[e]||o(n)}function v(e,t){c(e,function(e,n){t=t||"feature",g[n]=t,t in f||(f[t]=[])})}var w={},g={},m={on:p,emit:n,get:d,listeners:l,context:t,buffer:v};return m}function i(){return new r}var a="nr@context",u=e("gos"),c=e(2),f={},s={},p=t.exports=o();p.backlog=f},{}],gos:[function(e,t,n){function r(e,t,n){if(o.call(e,t))return e[t];var r=n();if(Object.defineProperty&&Object.keys)try{return Object.defineProperty(e,t,{value:r,writable:!0,enumerable:!1}),r}catch(i){}return e[t]=r,r}var o=Object.prototype.hasOwnProperty;t.exports=r},{}],handle:[function(e,t,n){function r(e,t,n,r){o.buffer([e],r),o.emit(e,t,n)}var o=e("ee").get("handle");t.exports=r,r.ee=o},{}],id:[function(e,t,n){function r(e){var t=typeof e;return!e||"object"!==t&&"function"!==t?-1:e===window?0:a(e,i,function(){return o++})}var o=1,i="nr@id",a=e("gos");t.exports=r},{}],loader:[function(e,t,n){function r(){if(!w++){var e=v.info=NREUM.info,t=s.getElementsByTagName("script")[0];if(e&&e.licenseKey&&e.applicationID&&t){c(l,function(t,n){e[t]||(e[t]=n)});var n="https"===p.split(":")[0]||e.sslForHttp;v.proto=n?"https://":"http://",u("mark",["onload",a()],null,"api");var r=s.createElement("script");r.src=v.proto+e.agent,t.parentNode.insertBefore(r,t)}}}function o(){"complete"===s.readyState&&i()}function i(){u("mark",["domContent",a()],null,"api")}function a(){return(new Date).getTime()}var u=e("handle"),c=e(2),f=window,s=f.document;NREUM.o={ST:setTimeout,CT:clearTimeout,XHR:f.XMLHttpRequest,REQ:f.Request,EV:f.Event,PR:f.Promise,MO:f.MutationObserver},e(1);var p=""+location,l={beacon:"bam.nr-data.net",errorBeacon:"bam.nr-data.net",agent:"js-agent.newrelic.com/nr-918.min.js"},d=window.XMLHttpRequest&&XMLHttpRequest.prototype&&XMLHttpRequest.prototype.addEventListener&&!/CriOS/.test(navigator.userAgent),v=t.exports={offset:a(),origin:p,features:{},xhrWrappable:d};s.addEventListener?(s.addEventListener("DOMContentLoaded",i,!1),f.addEventListener("load",r,!1)):(s.attachEvent("onreadystatechange",o),f.attachEvent("onload",r)),u("mark",["firstbyte",a()],null,"api");var w=0},{}]},{},["loader"]);</script> <meta name="viewport" content="initial-scale=1,user-scalable=no,maximum-scale=1"> <link rel="shortcut icon" href="https://web.archive.org/web/20160711051037im_/http://www.bloomberg.com/trading-solutions/content/themes/enterprise/favicon.ico" type="image/x-icon"> <style> .recent-posts { background: url(https://web.archive.org/web/20160711051037im_/http://www.bbhub.io/solutions/sites/10/2016/02/BG-blog-section-v32.jpg) top left no-repeat; } </style>  <title>Why asset managers will be fewer but better by 2020 | Total Cost of Ownership, Workflow Efficiency |Bloomberg Trading Solutions</title> <meta name="description" content="The rise of low cost products, smart beta strategies and robo-advisers that appeal to millennials will combine to reduce the number of asset management firms in coming years, but managers that can differentiate their offering and deliver alpha will be more highly valued."/> <meta name="robots" content="noodp"/> <link rel="canonical" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/asset-managers-will-fewer-better-2020/"/> <meta property="og:locale" content="en_US"/> <meta property="og:type" content="article"/> <meta property="og:title" content="Why asset managers will be fewer but better by 2020 | Total Cost of Ownership, Workflow Efficiency |Bloomberg Trading Solutions"/> <meta property="og:description" content="The rise of low cost products, smart beta strategies and robo-advisers that appeal to millennials will combine to reduce the number of asset management firms in coming years, but managers that can differentiate their offering and deliver alpha will be more highly valued."/> <meta property="og:url" content="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/asset-managers-will-fewer-better-2020/"/> <meta property="og:site_name" content="Bloomberg Trading Solutions"/> <meta property="article:publisher" content="https://www.facebook.com/bloomberglp"/> <meta property="article:section" content="Total Cost of Ownership"/> <meta property="article:published_time" content="2016-06-30T16:27:54+00:00"/> <meta property="article:modified_time" content="2016-06-30T16:31:19+00:00"/> <meta property="og:updated_time" content="2016-06-30T16:31:19+00:00"/> <meta property="og:image" content="https://web.archive.org/web/20160711051037im_/http://www.bbhub.io/solutions/sites/10/2016/06/Assetmanagers.jpg"/> <meta property="og:image:width" content="4000"/> <meta property="og:image:height" content="2667"/> <meta name="twitter:card" content="summary_large_image"/> <meta name="twitter:description" content="The rise of low cost products, smart beta strategies and robo-advisers that appeal to millennials will combine to reduce the number of asset management firms in coming years, but managers that can differentiate their offering and deliver alpha will be more highly valued."/> <meta name="twitter:title" content="Why asset managers will be fewer but better by 2020 | Total Cost of Ownership, Workflow Efficiency |Bloomberg Trading Solutions"/> <meta name="twitter:site" content="@theterminal"/> <meta name="twitter:image" content="https://web.archive.org/web/20160711051037im_/http://www.bbhub.io/solutions/sites/10/2016/06/Assetmanagers.jpg"/> <meta name="twitter:creator" content="@theterminal"/>  <link rel="shortcut icon" href="https://web.archive.org/web/20160711051037im_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-favicon/favicons/black.ico" type="image/x-icon"> <link rel="stylesheet" id="that-data-css" href="//web.archive.org/web/20160711051037cs_/http://www.bbthat.com/assets/v1.2.1/that.css" type="text/css" media="all"/> <link rel="stylesheet" id="bbg-download-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-downloads/css/style.css?ver=1.7.5" type="text/css" media="all"/> <link rel="stylesheet" id="bb_subscribe-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-email-subscribe/css/styles.css?ver=1.2" type="text/css" media="all"/> <link rel="stylesheet" id="events-filter-styles-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-events/event-styles.css?ver=4.5.2" type="text/css" media="all"/> <link rel="stylesheet" id="stock-ticker-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-stock-ticker/css/ticker.css?ver=1.1.1" type="text/css" media="all"/> <link rel="stylesheet" id="js_composer_front-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/plugins/wpbakery-visual-composer/assets/css/js_composer.min.css?ver=4.11.2.1" type="text/css" media="all"/> <link rel="stylesheet" id="ent-styles-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/themes/enterprise/stylesheets/style.css?rel=6399b9fa14" type="text/css" media="all"/> <link rel="stylesheet" id="softwall-css" href="https://web.archive.org/web/20160711051037cs_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-softwall/css/softwall.css?ver=0.7.6" type="text/css" media="all"/> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/wp-includes/js/jquery/jquery.js?ver=1.12.3"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/wp-includes/js/jquery/jquery-migrate.min.js?ver=1.4.0"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-downloads/js/script.js?ver=1.7.5"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-events/front-end.js?ver=4.5.2"></script> <link rel="https://api.w.org/" href="http://www.bloomberg.com/trading-solutions/wp-json/"/> <link rel="shortlink" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/?p=2014"/> <link rel="alternate" type="application/json+oembed" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/wp-json/oembed/1.0/embed?url=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F"/> <link rel="alternate" type="text/xml+oembed" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/wp-json/oembed/1.0/embed?url=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&format=xml"/> <style>span.field-bloomberg_site_field{ display:none !important; }</style><script>var form_site_url = 'https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions';</script><meta name="generator" content="Powered by Visual Composer - drag and drop page builder for WordPress."/>  <script> (function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,'script','//web.archive.org/web/20160711051037/http://www.google-analytics.com/analytics.js','ga'); ga('create', 'UA-43332546-7', 'auto'); ga('send', 'pageview'); </script>  <script type="text/javascript"> var _elqQ = _elqQ || []; _elqQ.push(['elqSetSiteId', "522772699"]); _elqQ.push(['elqTrackPageView']); (function () { function async_load() { var s = document.createElement('script'); s.type = 'text/javascript'; s.async = true; s.src = '//web.archive.org/web/20160711051037/http://img.en25.com/i/elqCfg.min.js'; var x = document.getElementsByTagName('script')[0]; x.parentNode.insertBefore(s, x); } if (window.addEventListener) window.addEventListener('DOMContentLoaded', async_load, false); else if (window.attachEvent) window.attachEvent('onload', async_load); })(); </script> <noscript><style type="text/css"> .wpb_animate_when_almost_visible { opacity: 1; }</style></noscript></head> <body class="single single-post postid-2014 single-format-standard wpb-js-composer js-comp-ver-4.11.2.1 vc_responsive"> <script> dataLayer = [{ 'gtm.whitelist': ['google', 'lcl', 'fsl'], 'gtm.author': 'vstovallvstovall' }]; </script>  <noscript><iframe src="//web.archive.org/web/20160711051037if_/http://www.googletagmanager.com/ns.html?id=GTM-NQLWCD" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript> <script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start': new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src= '//web.archive.org/web/20160711051037/http://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f); })(window,document,'script','dataLayer','GTM-NQLWCD');</script>  <div id="bb-that"> <nav class="bb-that"> <header class="bb-that-header bb-that--container"> <a class="bb-that-header__link bb-that-header--sitemap-trigger" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg the Company & Its Products</a><a class="bb-that-header__link" href="https://web.archive.org/web/20160711051037/https://bba.bloomberg.net/?utm_source=bloomberg-menu&utm_medium=tradingsolutions"><span>Bloomberg Anywhere Remote Login</span><span>Bloomberg Anywhere Login</span></a><a class="bb-that-header__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/professional/bcom-demo/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-CORE-bbgmenu-demo">Bloomberg Terminal Demo Request</a> </header> <div class="bb-that__sitemap bb-that--container"> <div class="bb-that__close"></div> <ul class="bb-that__sitemap-sections bb-that--visible-md bb-that--visible-lg"> <li class="bb-that__col bb-that__col--md"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Bloomberg</h2> <div class="bb-that-category__content"><p class="bb-that-category__text">Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.</p></div></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Customer Support</h2> <div class="bb-that-category__content"><p class="bb-that-category__text">Americas<br/> +1 212 318 2000</p><p class="bb-that-category__text">Europe, Middle East, & Africa<br/> +44 20 7330 7500</p><p class="bb-that-category__text">Asia Pacific<br/> +65 6212 1000</p></div></section> </li> <li class="bb-that__col bb-that__col--md"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Company</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/careers/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Careers</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/diversity-inclusion/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Diversity & Inclusion</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/bcause/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Sustainability</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.techatbloomberg.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Technology</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/bloomberg-facts/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">History & Facts</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/philanthropy/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Philanthropy & Engagement</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Communications</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/announcements/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Press Announcements</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/press-contacts/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Press Contacts</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Follow Us</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/http://www.facebook.com/Bloomberglp" class="bb-that-category__social-link bb-that--icon-facebook" target="_blank">Facebook</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://twitter.com/bloomberg" class="bb-that-category__social-link bb-that--icon-twitter" target="_blank">Twitter</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://www.linkedin.com/company/2494" class="bb-that-category__social-link bb-that--icon-linkedin" target="_blank">LinkedIn</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://www.instagram.com/bloomberg/" class="bb-that-category__social-link bb-that--icon-instagram" target="_blank">Instagram</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://vimeo.com/bloomberg" class="bb-that-category__social-link bb-that--icon-vimeo" target="_blank">Vimeo</a></li></ul></section> </li> <li class="bb-that__col bb-that__col--md"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Financial Products</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/professional/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-CORE-bbgmenu">Bloomberg Terminal</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergtradebook.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-02-13-TBOOK-bbgmenu">Bloomberg Tradebook</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergbriefs.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Briefs</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergindices.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-05-13-Indices-bbgmenu">Bloomberg Indices</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergsef.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-08-13-SEF-bbgmenu">Bloomberg SEF</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://about.bloomberginstitute.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Institute</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Bloomberg Customers</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/https://bba.bloomberg.net/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Anywhere Remote Login</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/professional/downloads/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Download Software</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://service.bloomberg.com/portal/sessions/new?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Service Center</a></li></ul></section> </li> <li class="bb-that__col bb-that__col--md"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Enterprise Products</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/enterprise/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-09-13-ES-bbgmenu">Enterprise Solutions</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-09-13-TS-bbgmenu">Trading Solutions</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/vault/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-09-13-ES-BVAULT-bbgmenu">Bloomberg Vault</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergpolarlake.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg PolarLake</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Industry Products</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://about.bgov.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Government</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bna.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Law/BNA</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/https://bol.bna.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Big Law</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://about.bnef.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg New Energy Finance</a></li></ul></section> </li> <li class="bb-that__col bb-that__col--md"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Media</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg.com</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/politics/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Politics</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergview.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg View</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/gadfly/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Gadfly</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/live?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Television</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/radio/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Radio</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/mobile/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Mobile Apps</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/news-bureaus/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">News Bureaus</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Media Services</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberglive.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Live Conferences</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/content-service/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Content Service</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergmedia.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Advertising</a></li></ul></section> </li> </ul> <ul class="bb-that__sitemap-sections bb-that--visible-sm"> <li class="bb-that__col bb-that__col--sm"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Bloomberg</h2> <div class="bb-that-category__content"><p class="bb-that-category__text">Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.</p></div></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Customer Support</h2> <div class="bb-that-category__content"><p class="bb-that-category__text">Americas<br/> +1 212 318 2000</p><p class="bb-that-category__text">Europe, Middle East, & Africa<br/> +44 20 7330 7500</p><p class="bb-that-category__text">Asia Pacific<br/> +65 6212 1000</p></div></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Communications</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/announcements/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Press Announcements</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/press-contacts/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Press Contacts</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Follow Us</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/http://www.facebook.com/Bloomberglp" class="bb-that-category__social-link bb-that--icon-facebook" target="_blank">Facebook</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://twitter.com/bloomberg" class="bb-that-category__social-link bb-that--icon-twitter" target="_blank">Twitter</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://www.linkedin.com/company/2494" class="bb-that-category__social-link bb-that--icon-linkedin" target="_blank">LinkedIn</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://www.instagram.com/bloomberg/" class="bb-that-category__social-link bb-that--icon-instagram" target="_blank">Instagram</a></li><li class="bb-that-category__item"><a href="https://web.archive.org/web/20160711051037/https://vimeo.com/bloomberg" class="bb-that-category__social-link bb-that--icon-vimeo" target="_blank">Vimeo</a></li></ul></section> </li> <li class="bb-that__col bb-that__col--sm"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Company</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/careers/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Careers</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/diversity-inclusion/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Diversity & Inclusion</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/philanthropy/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Philanthropy & Engagement</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/bcause/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Sustainability</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.techatbloomberg.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Technology</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/bloomberg-facts/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">History & Facts</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Media</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg.com</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/politics/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Politics</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergview.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg View</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/live?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Television</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/radio/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Radio</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/mobile/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Mobile Apps</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/company/news-bureaus/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">News Bureaus</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Media Services</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergmedia.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Advertising</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/content-service/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Content Service</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberglive.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Live Conferences</a></li></ul></section> </li> <li class="bb-that__col bb-that__col--sm"> <section class="bb-that-category"> <h2 class="bb-that-category__title">Financial Products</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/professional/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-CORE-bbgmenu">Bloomberg Terminal</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergtradebook.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-02-13-TBOOK-bbgmenu">Bloomberg Tradebook</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergbriefs.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Briefs</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergindices.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-05-13-Indices-bbgmenu">Bloomberg Indices</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergsef.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-08-13-SEF-bbgmenu">Bloomberg SEF</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://about.bloomberginstitute.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Institute</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Enterprise Products</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/enterprise/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-09-13-ES-bbgmenu">Enterprise Solutions</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-09-13-TS-bbgmenu">Trading Solutions</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/vault/?utm_source=bloomberg-menu&utm_medium=tradingsolutions&bbgsum=DG-WS-09-13-ES-BVAULT-bbgmenu">Bloomberg Vault</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloombergpolarlake.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg PolarLake</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Industry Products</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://about.bgov.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Government</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bna.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Law/BNA</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/https://bol.bna.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Big Law</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://about.bnef.com/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg New Energy Finance</a></li></ul></section> <section class="bb-that-category"> <h2 class="bb-that-category__title">Bloomberg Customers</h2> <ul class="bb-that-category__content"><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/https://bba.bloomberg.net/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Bloomberg Anywhere Remote Login</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/professional/downloads/?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Download Software</a></li><li class="bb-that-category__item"><a class="bb-that-category__link" href="https://web.archive.org/web/20160711051037/http://service.bloomberg.com/portal/sessions/new?utm_source=bloomberg-menu&utm_medium=tradingsolutions">Service Center</a></li></ul></section> </li> </ul> </div> </nav> </div><header> <nav class="navbar container" role="navigation" id="navigation"> <div class="navbar-brand"> <a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/"><img src="https://web.archive.org/web/20160711051037im_/http://www.bbhub.io/solutions/sites/10/2015/12/b-b-g-t-s-w-h-t-l-o-n-g-01.svg" alt="Bloomberg Trading Solutions"></a> <button type="button" class="navbar-toggle" data-toggle="collapse" data-target=".navbar-collapse"> <span class="sr-only">Menu</span> <span class="fa fa-bars"></span> </button> </div> <div class="collapse navbar-collapse"><ul id="navigation" class="nav navbar-nav navbar-right"><li class=" dropdown"><a title="Opportunities" href="#" data-toggle="dropdown" class="dropdown-toggle" aria-haspopup="true">Opportunities </a> <ul role="menu" class=" dropdown-menu sub-menu level-1"> <li><a title="Lower Total Cost of Ownership" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/profitability-and-lower-tco/">Lower Total Cost of Ownership</a></li> <li><a title="More Efficient Workflows" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/workflow-efficiency/">More Efficient Workflows</a></li> <li><a title="Easier Regulatory Compliance" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/regulatory-compliance/">Easier Regulatory Compliance</a></li> <li><a title="Smarter Data Management" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/data-management/">Smarter Data Management</a></li> </ul> </li> <li class=" dropdown"><a title="Solutions" href="#" data-toggle="dropdown" class="dropdown-toggle" aria-haspopup="true">Solutions </a> <ul role="menu" class=" dropdown-menu sub-menu level-1"> <li class=" dropdown"><a title="FOR FUNCTIONS" href="#">FOR FUNCTIONS</a> <ul role="menu" class=" dropdown-menu sub-menu level-2"> <li><a title="Trading" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/trading/">Trading</a></li> <li><a title="Portfolio Management" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/portfolio-management/">Portfolio Management</a></li> <li><a title="Compliance" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/compliance/">Compliance</a></li> <li><a title="Operations" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/operations/">Operations</a></li> <li><a title="Technology" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/technology/">Technology</a></li> </ul> </li> <li class=" dropdown"><a title="FOR FIRMS" href="#">FOR FIRMS</a> <ul role="menu" class=" dropdown-menu sub-menu level-2"> <li><a title="Asset Owners" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/asset-owners/">Asset Owners</a></li> <li><a title="Asset Managers" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/asset-managers/">Asset Managers</a></li> <li><a title="Hedge Funds" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/hedge-funds/">Hedge Funds</a></li> <li><a title="Regional Broker-Dealers" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/regional-broker-dealers/">Regional Broker-Dealers</a></li> <li><a title="Global Broker-Dealers" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/global-broker-dealers/">Global Broker-Dealers</a></li> </ul> </li> </ul> </li> <li class=" dropdown"><a title="Products" href="#" data-toggle="dropdown" class="dropdown-toggle" aria-haspopup="true">Products </a> <ul role="menu" class=" dropdown-menu sub-menu level-1"> <li><a title="Buy-Side" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/buy-side/">Buy-Side</a></li> <li><a title="Sell-Side Equity" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/sell-side-equity/">Sell-Side Equity</a></li> <li><a title="Sell-Side Fixed-Income" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/sell-side-fixed-income/">Sell-Side Fixed-Income</a></li> </ul> </li> <li><a title="About" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/about/">About</a></li> <li class="current_page_parent"><a title="Blog" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/">Blog</a></li> <li class="uppercase demo"><a title="CONTACT US" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/contact-us/?bbgsum=DG-WS-TS-blog">CONTACT US</a></li> <li class="search visible-md visible-lg"><a title="Search" href="#"><i class="fa fa-search"></i></a></li> </ul> <div class="social mobile"></div></div> </nav> </header> <section class="search-prompt "> <div class="wrapper"> <div class="container"> <div class="row"> <div class="col-sm-8 col-sm-offset-2 col-xs-10 col-xs-offset-1"> <p class="hidden-xs"> </p> <form role="search" method="get" class="search-form" action="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/"> <label> <span class="screen-reader-text">Search for:</span> <input type="search" class="search-field" placeholder="Enter keywords." value="" name="s" title="Search for:" data-mobile-placeholder="Search" maxlength="50"> </label> <button type="submit"><i class="fa fa-search"></i></button> </form> </div> </div> </div> </div> </section> <div class="blog post-2014 post type-post status-publish format-standard has-post-thumbnail hentry category-total-cost-of-ownership category-workflow-efficiency"> <div class="heading hero-image" style="background:url('https://web.archive.org/web/20160711051037im_/http://www.bbhub.io/solutions/sites/10/2016/06/Assetmanagers.jpg'); background-size:cover;"> <div class="container"> <div class="shadow"></div> <div class="heading-content col-md-12"> <div class="back-link"><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/category/total-cost-of-ownership/">Total Cost of Ownership</a></div> <h1>Why asset managers will be fewer but better by 2020</h1> </div> </div> </div> <div class="container post-heading-container"> <div class="post-heading post-sharing-section container"> <h4> <span class="date">June 30, 2016</span> </h4> <div class="source"></div> <div class="share"> <div class="social">Share: <div class="social"> <a href="https://web.archive.org/web/20160711051037/https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&text=Why+asset+managers+will+be+fewer+but+better+by+2020" target="_blank"><span class="fa fa-twitter"></span></a> <a href="https://web.archive.org/web/20160711051037/https://www.linkedin.com/shareArticle?mini=true&url=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&title=Why+asset+managers+will+be+fewer+but+better+by+2020&source=Bloomberg" target="_blank"><span class="fa fa-linkedin"></span></a> <a href="https://web.archive.org/web/20160711051037/http://www.facebook.com/share.php?u=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&title=Why+asset+managers+will+be+fewer+but+better+by+2020" target="_blank"><span class="fa fa-facebook"></span></a> <a href="https://web.archive.org/web/20160711051037/mailto:/?subject=Why%20asset%20managers%20will%20be%20fewer%20but%20better%20by%202020&body=Why%20asset%20managers%20will%20be%20fewer%20but%20better%20by%202020 Check Out: http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F"><span class="fa fa-envelope-o"></span></a> </div> </div> </div> </div> </div> <div id="content" role="main" class="container"> <div class="post-content"> <div class="byline"> </div> <p>The rise of low cost products, smart beta strategies and robo-advisers that appeal to millennials will combine to reduce the number of asset management firms in coming years, but managers that can differentiate their offering and deliver alpha will be more highly valued.</p> <p>That was the message from a panel discussion at the Sydney leg of Bloomberg’s Trading Solutions Buy Side Forum 16, which also touched on the potential impact of disruptive technology and China on the asset management industry. Here are the key takeaways from the debate:</p> <p><strong>Low cost need not mean passive management<br/> </strong>With costs high on the agenda, the asset management industry is seeing the diversification of assets away from actively managed domestic equities toward balanced funds of ETFs and smart beta products with a more global focus. However, that does not mean a new era of ‘set-and-forget’.</p> <p>“Investors need to be active to achieve returns in this kind of environment,” said Tracey McNaughton, Head of Investment Strategy, UBS Asset Management, who argued low cost products can be designed to retain an active element in asset allocation, if not stock selection, by adding a derivatives overlay to a portfolio base of ETFs.</p> <p><strong>Smart beta will break some managers, make others<br/> </strong>The trend toward commoditized beta and insourcing will reshape the industry. “By 2020 we’ll see fewer, but infinitely higher quality, asset management firms,” said Sam Hallinan, Managing Director, Nikko Asset Management. Passive strategies will enable firms to scale low cost operations that deliver steady returns to investors, but active strategies will become a point of differentiation. While Blackrock is strongly backing smart beta, its rise will “also highlight how valuable alpha really is,” said Jon Howie, Head of iShares Australia, Blackrock. “You should be happy to pay a lot for it if you can find it.”</p> <p><strong>The industry must change to attract next gen investors<br/> </strong>A 2015 Charles Schwab survey of U.S. millennials’ found that 41% of their portfolio value was invested in ETFs, almost twice the average, and that share is set to increase further. In response the industry must kick a 30-year habit of ignoring the next generation of investors and talking only to financial advisers and other intermediaries.</p> <p>Rather than trust in financial advisers, Millennials prefer to have direct control over their investments, accessing data and advice in real-time using non-traditional models of engagement, such as smartphone apps and robo-advisers. “Technology changes everything. That’s how we’re going to connect with the clients of 2020-2030,” said Howie. “ETFs themselves are a technology: a shift in the way people interact with investments.”</p> <p><strong>New technology promises a revolution<br/> </strong>Disruptive technology could go far beyond mobile apps, with innovations such as artificial intelligence, big data and the Blockchain promising to revolutionize both the asset management industry and underlying financial system. Scraping social media sites for data can be a powerful tool for revealing market sentiment, information that can be fed into investment processes and also be used in conjunction with robo-advisers.</p> <p>“Can we predict when someone is going to make a poor decision—such as selling down during a market sell-off or buying in at the market top—based on certain activities on their account?” said Howie. “It’s very early days but data and technology is going to be a huge theme in how we create a value proposition for clients and improve outcomes for investors.”</p> <p><strong>China could lead the asset management world<br/> </strong>China’s economy may be slowing, and its equity markets volatile, but it remains a land of enormous opportunity for international investors. “It’s a rich and fertile ground for harvesting alpha,” said McNaughton. “It’s still got lots of growth and development left in it, as long as you have an eye on risk.”</p> <p>The lack of incumbents in China’s own asset management industry gives new players the chance to skip a generation: avoiding legacy technology and market structures, and moving straight to advice offered through a mobile phone and linked to wider financial services, such as cash accounts and credit cards. “The size of the market and ability for those companies to create their own reality mean that China can lead the world in adoption of technology and development of these new propositions,” said Howie.</p> <div class="boiler"> </div> </div> <div class="post-heading bottom-sharing"> <div class="share"> <div class="social">Share: <div class="social"> <a href="https://web.archive.org/web/20160711051037/https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&text=Why+asset+managers+will+be+fewer+but+better+by+2020" target="_blank"><span class="fa fa-twitter"></span></a> <a href="https://web.archive.org/web/20160711051037/https://www.linkedin.com/shareArticle?mini=true&url=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&title=Why+asset+managers+will+be+fewer+but+better+by+2020&source=Bloomberg" target="_blank"><span class="fa fa-linkedin"></span></a> <a href="https://web.archive.org/web/20160711051037/http://www.facebook.com/share.php?u=http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F&title=Why+asset+managers+will+be+fewer+but+better+by+2020" target="_blank"><span class="fa fa-facebook"></span></a> <a href="https://web.archive.org/web/20160711051037/mailto:/?subject=Why%20asset%20managers%20will%20be%20fewer%20but%20better%20by%202020&body=Why%20asset%20managers%20will%20be%20fewer%20but%20better%20by%202020 Check Out: http%3A%2F%2Fwww.bloomberg.com%2Ftrading-solutions%2Fblog%2Fasset-managers-will-fewer-better-2020%2F"><span class="fa fa-envelope-o"></span></a> </div> </div> </div> </div> <div class="enterprise_related_posts related_posts_widget"> <span class="related_title"> <h3>Get more on the <a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog">blog</a></h3> </span> <div class="related-posts-wrap"> <div class="col-xs-12 col-sm-4 "> <div class="category"><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/category/data-management/">Data Management</a></div> <h3><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/heres-buy-side-say-big-data/">Investing in Big Data is top priority, but buy-side firms ask ‘whose job is it?’</a></h3> </div> <div class="col-xs-12 col-sm-4 "> <div class="category"><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/category/data-management/">Data Management</a></div> <h3><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/australias-buy-side-seeks-new-allocations-growth/">Australia’s buy-side seeks new allocations for growth</a></h3> </div> <div class="col-xs-12 col-sm-4 "> <div class="category"><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/category/regulatory-compliance/">Regulation and Compliance</a></div> <h3><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/6-reasons-not-delegate-transaction-reporting-mifir/">6 reasons why you should not delegate your transaction reporting under MiFIR</a></h3> </div> <div class="col-xs-12 col-sm-4 "> <div class="category"><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/category/regulatory-compliance/">Regulation and Compliance</a></div> <h3><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/black-blue-white-gold/">Liquidity issues: Black and blue or white and gold?</a></h3> </div> <div class="col-xs-12 col-sm-4 "> <div class="category"><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/category/mifid/">MiFID</a></div> <h3><a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/blog/lesson-learned-delegated-reporting-mifid-mifir-dont-waste-time/">Lesson learned from delegated reporting under MiFID I: With MiFIR, don’t waste your time</a></h3> </div> </div> </div> </div> </div> <div class="wpb_text_column wpb_content_element affiliated_product"> <div class="wpb_wrapper container"> <div class="cta"> <p>Learn more about <a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/buy-side/">Buy-Side</a> or contact sales for Bloomberg Trading Solutions.</p> <a id="contact-button" href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/trading-solutions/contact-us?bbgsum=DG-WS-TS-blog" type="button" name="contact" class="contact_button" value="Contact Sales">Contact Sales</a> </div> </div> </div> <footer> <div class="container"> <span class="separator"><img class="logo" src="https://web.archive.org/web/20160711051037im_/http://www.bloomberg.com/trading-solutions/content/themes/enterprise/images/bloomberg-logo.svg" alt="Bloomberg"/></span> <div class="additional-copy"> <p class="copyright">© 2016 Bloomberg Finance L.P. All rights reserved. <a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/privacy/">Privacy</a> and <a href="https://web.archive.org/web/20160711051037/http://www.bloomberg.com/tos/">Terms</a></p> </div> </div> </footer> <script id="ticker" type="text/html"> <div class="outer_tickerbar base_container"> <div class="inner_tickerbar"> <div class="ticker_holder"> <div id="tickerID_{{ticker_key}}" class="ticker"> {{#ticker_items}} <div class="{{ticker_class}} ticker_pill" id="ticker_{{ticker_key}}_symbol_{{id_key}}"> <div class="inner_pill cl_tickername">{{title}}</div> <div class="inner_pill cl_price"> <span class="last_price">{{last}}</span> </div> <div class="inner_pill"> <span class="value_change">{{percent_change}}%</span> </div> </div> {{/ticker_items}} </div> </div> </div> </div> </script> <div class="softwall-modal modal hide fade" tabindex="-1" role="dialog" aria-hidden="true"> <a class="close" href="#" data-dismiss="modal" aria-hidden="true">X</a> <div class="modal-body"> <div class="softwall active" data-name="softwall-modal" data-use-cookie="0" data-base-url="/trading-solutions/"> <div class="form"> </div> <div class="content"> </div> </div> </div> </div> <script type="text/javascript"> _bizo_data_partner_id = "612"; </script> <script type="text/javascript"> (function() { var s = document.getElementsByTagName("script")[0]; var b = document.createElement("script"); b.type = "text/javascript"; b.async = true; b.src = (window.location.protocol === "https:" ? "https://web.archive.org/web/20160711051037/https://sjs" : "https://web.archive.org/web/20160711051037/http://js") + ".bizographics.com/insight.min.js"; s.parentNode.insertBefore(b, s); })(); </script> <noscript><img height="1" width="1" alt="" style="display:none;" src="//web.archive.org/web/20160711051037im_/http://www.bizographics.com/collect/?pid=612&fmt=gif"></noscript><script type="text/javascript" src="//web.archive.org/web/20160711051037js_/http://www.bbthat.com/assets/v1.2.1/that.js"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-forms/js/bloomberg-forms.min.js?ver=3.1.1"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/content/themes/enterprise/javascripts/scripts.min.js?rel=4722c80ea7"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/content/plugins/bloomberg-softwall/js/softwall.min.js?ver=0.7.6"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/wp-includes/js/wp-embed.min.js?ver=4.5.2"></script> <script type="text/javascript" src="https://web.archive.org/web/20160711051037js_/http://www.bloomberg.com/trading-solutions/content/plugins/wpbakery-visual-composer/assets/js/dist/js_composer_front.min.js?ver=4.11.2.1"></script> <script type="text/javascript">window.NREUM||(NREUM={});NREUM.info={"beacon":"bam.nr-data.net","licenseKey":"cd0676da66","applicationID":"3368783","transactionName":"YQEHZRZXWkpVVhVbWlhLJFIQX1tXG0YIXFJaAQ==","queueTime":0,"applicationTime":345,"atts":"TUYEE15NSUQ=","errorBeacon":"bam.nr-data.net","agent":""}</script></body> </html>