Rebooting the global asset management industry

8 Rebooting the global asset management industry Survey Highlights (% of respondents) cite the rise of passive funds as a key challenge 61% cite democratization of privatemarkets as a key driver of future business growth 67% cite accelerating fee compression as a key challenge 57% cite intergenerational wealth transfer as a key driver of future business growth 59% Recent Challenges and Future Drivers 41% 48% 26% 64% are in the implementation phase of AI and a further 5% are in the maturity phase rate the future impact of AI & GenAI on their business as medium and a further 29% rate it as large are in the implementation phase of GenAI and a further 3% are in the maturity phase believe that the biggest future impact of AI & GenAI will be on investment process Adoption and Impacts of AI and GenAI 72% 20% 35% 59% have outsourced custody and settlement in the back office have outsourced trading in the front office have outsourced IT infrastructure in the middle office cite cost reduction as the main benefit of outsourcing Outsourcing Across the Value Chain 67% 57% 59% 55% cite democratized access to private markets as a key feature cite technology-assisted personalized portfolios as a key feature cite performance-based fees as a key feature cite outcome-oriented investments as a key feature Features of Winning Business Models 64% 58% 60% 62% have leaders who are setting a credible vision of a digital future have built their core values into business processes & staff behaviors have leaders who are putting their clients at the heart of the vision are seeking to ensure that staff have skills, values and behaviors that support the vision Centrality of Leadership, Culture and Talent