The Industrial Organization of the Global Asset Management Business

114 Pages Posted: 16 Jan 2016

See all articles by Ingo Walter

Ingo Walter

New York University - Leonard N. Stern School of Business; New York University (NYU) - Department of Finance

Date Written: December 15, 2016

Abstract

The dynamics of the asset management business are complex and geographically diverse. Products and vendors compete within and across markets and often shade into each other. Regulation can differ dramatically according to financial systems and functions. Here are discussed the major asset management sectors — pension funds, mutual funds, alternative investment vehicles, and private wealth management. Despite the complexity of the industry, common threads run through the discussion — growth, risk, and cost — that cannot be ignored by asset managers hoping to be sustainably profitable. What is required to excel includes distribution in leading markets, product breadth and consistency, global money management expertise, and capital strength. Also needed are technological capability, marketing and customer service skills, defensible pricing, low-cost production, and a strong brand. All these characteristics must be rooted in an affirmative culture with cohesive senior management and a talented and motivated staff.

Keywords: pension fund, mutual fund, alternative, private wealth, asset management

JEL Classification: G2

Suggested Citation

Walter, Ingo, The Industrial Organization of the Global Asset Management Business (December 15, 2016). CFA Institute Research Foundation M2015-4. Available at SSRN: https://ssrn.com/abstract=2716127

Ingo Walter (Contact Author)

New York University - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY 10012
United States
212-998-0707 (Phone)
212-995-4220 (Fax)

New York University (NYU) - Department of Finance

Stern School of Business
44 West 4th Street
New York, NY 10012-1126
United States

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