'We're in a period of profound change': Gatekeepers spot top offshore trends – Citywire Americas

Citywire – For Professional Investors
The pandemic accelerated many slow-burning industry trends and also kickstarted some new ones. We asked our Top 30 gatekeepers which trends they believe will dominate the wealth management landscape over the next few years.
 
Christel Miranda, Credicorp Capital
‘A lot of changes are already happening. To mention but a few: the democratization of investments through digital solutions; companies’ growing investment in innovation to differentiate themselves from rivals; the increasing exposure to alternative investments in retail portfolios and more liquid structures for private investments; sustainability and responsible investment principles as a central axis in decision-making; and the growth of customized solutions from active managers to stay ahead of passive investments.’

Ryan Kinkade, Franklin Templeton
‘I think we’ll see the advance of many existing trends, including: financial advice shifting towards model delivery and a more digital or technology-enabled interface allowing advisors to scale and grow their business; product innovation in areas such as active non-transparent ETFs and semi-illiquid products; and increasing consideration of ESG principles, including regulation and standardization through efforts such as the Sustainable Finance Disclosure Regulation. I don’t think any of these are going away.’

Alberto Arrambide, Banco Sabadell
‘We are in a period of profound change as some catalysts have accelerated trends such as remote working and financial technology. The trend for consolidation of independent managers into bigger outfits, which has characterized the recent period, is also likely to continue, leading to a more consolidated but flexible international private banking industry with fewer but bigger participants.’

Richard Rainback, EFG Capital
‘ESG analysis is likely to become integrated into every fund’s investment process. We seem to be in a phase where ESG analysis is portrayed as a unique selling point for funds. I believe this will simply become an industry standard, but this trend will be accelerated by fund selectors. It is difficult to find a fund research team that has not yet taken steps to integrate a form of ESG assessment into their due diligence process – this will not go unnoticed by asset managers.’
 
Jorge Garcia, HSBC Global Private Bank
‘Cryptocurrency and blockchain-based solutions are slowly making their way into the fund space. Although broader blockchain funds have found more success getting through regulatory approvals to launch Ucits and US domestic (40 Act) vehicles, I wouldn’t be surprised if we see crypto-linked funds follow suit within the next few years, as they are already available through other fund-like vehicles.’
 
Eduardo Anton, Andbank
‘Clients are demanding more tailor-made and sophisticated investment solutions that will continue to accelerate the transition to a fee-based model and external mandates. Technology and digitalization will remain a determinant factor in escalating our business, especially as new generations enter the industry. There will also be more industry consolidation, with margins narrowing, and strategic partnerships will continue to be necessary.’
 
The pandemic accelerated many slow-burning industry trends and also kickstarted some new ones. We asked our Top 30 gatekeepers which trends they believe will dominate the wealth management landscape over the next few years.
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