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Laxman Pai, Opalesque Asia:

Competition among asset managers will become "fierce" in the coming decade as growth in the money management industry slows, said a study.

According to a research report by Broadridge Financial Solutions Inc, as competition heats up between both challengers and incumbents alike, the asset management industry's global organic growth, measured by total net asset flows, is projected to slow from a compound annual growth rate of 3.9% in 2021 to 1.7% in 2031.

Despite this, Broadridge forecasts that net asset inflows will still expand by a healthy US$18 trillion over the next decade, helping to push total assets under management (AUM) to a record of more than USD$170 trillion - unlocking exciting new avenues for growth and challenges to overcome for those that can adapt to change.

Competition, however, will be more fierce as growth slows. Broadridge's research reveals three increasingly distinct classes of industry competitors, two of which - expanding incumbents and innovative challengers - dominate the industry's organic growth.

Already less than 100 asset management firms globally accounted for nearly 64% of the industry's $14.4 trillion-plus in net new flows gathered since 2016, according to Broadridge's research.

Meanwhile, Broadridge expects significant opportunities to be had aligning business strategies to meet shifting secular trends, many of which, if missed, will increasingly bifurcate the marke......................

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