Insight Articles

The explosion of technology advancements in the RIA and Asset Management middle office space are grabbing the attention of firms who are looking for differentiated technology and service options to meet the growing hyper-competition of the financial marketplace.

While the ETF asset pool continues to grow (topping $7 trillion in the U.S. in 2021)1, advisers are also seeing increases in assets raised via Separately Managed Accounts (SMAs). With gross assets at $54 trillion in North America2 – ballooning SMAs have reached asset levels not seen since before the financial crisis. Investors are clearly noticing some of the advantages to these types of accounts. They receive customized strategies, often get a high level of personal attention from their money managers and have the ability to see all of their specific holdings in one statement.

Over the past two years, the pandemic environment propelled a very dramatic shift towards an advanced deployment of data, digital, and FinTech technology. The table stakes for asset managers to compete and work with investors/shareholders in financial services have been raised substantially. Client perception has shifted to really looking at the technology that firms are able to provide and evaluate them by the ease of use, enhanced engagement, and quality of access and information their tech is designed to provide.

As we have returned to a period of ultra-low interest rates, investors have a genuine need for products that may offer reasonable yields. That need is across the board, regardless of the wealth and education level of the investor.

In case you haven’t heard, the retail alternatives space is growing – faster than the hedge fund market, faster than the mutual fund market, faster than just about any other asset class.

In the results-driven investment world, it’s common for startup mutual fund managers – or those converting their private funds – to be centrally focused on breaking even.