Having identified that high performance is possible in asset management, let’s look at how these firms are achieving success. While success is possible under a number of strategies and models, industry forces are driving firms to choose a specific operating model.
Five models for high performance
Accenture’s research of high performance asset managers reveals that firms are choosing one of five operating models:
- Global solutions provider. These firms offer a broad range of tailored solutions across asset classes, geographies and risk appetites. This is a very challenging model to implement but can offer differentiation.
- Focused alpha factory. This model is typically seen in a hedge fund or private equity firm that distinguish themselves through investment management performance.
- Client experience champion. These high performers have set themselves apart in the way they serve their clients and make use of social media, mobility and client relationship management systems.
- Enterprise value creator. These asset managers are typically owned by banks or insurance companies and add value not only through their direct asset management, but also by working with private wealth or insurance divisions.
- Emerging markets champion. These firms are establishing positions in emerging markets and gaining distribution, regulatory and operational advantages.
Each high performance asset management model has its own competitive advantages and challenges. Our analysis shows that high performers succeed by developing clear, capability-based business strategies and aligning their operating model to the chosen strategy—then they out-execute the competition.
Think you’re up for the challenge? Join me next week when I discuss the three-step assessment process firms can take to chart a high performance course.
To learn more, download High Performance Asset Management (PDF; opens in new window).