Growth in the asset management industry is a positive sign, but managers should not get complacent, according to Denise Voss, new chairman of the Association of the Luxembourg Fund Industry (ALFI).
Voss opened the ALFI Global Distribution Conference by praising the diversification of the Luxembourg funds industry, pointing out that Luxembourg funds are now based in more than 70 countries around the world.
She did warn that “growth is fragile”, citing the recent turbulence in the markets in China and saying that it will likely affect assets under management worldwide.
Voss went on to point out two main challenges to the funds industry: changing demographics and embracing digital technology.
An ageing population is putting more pressure on state pension systems, meaning that the next generation may opt for private investment. “This is an opportunity for the asset management community,” said Voss, but requires ‘investment education’, and the right product offerings for investors.
Digital technology also relates to accessibility to investment. Voss suggested that investment through an ‘e-platform’ would improve access. There are also opportunities to be found in big data, which is “bringing finance and technology together”.
Finally, Voss referred to the rising number of middle class consumers around the world, saying this means “more savings, some of which can be invested”.
She concluded that investment management must prove that it serves investors in the community as a whole, saying that the future looks bright “but we mustn’t rest on our laurels”.
