As­set man­age­ment

Finweek English Edition - - INVESTMENT -

Astroll through Cape Town In­ter­na­tional Air­port or OR Tambo In­ter­na­tional will make one thing clear: as­set man­age­ment com­pa­nies are mak­ing money… and a lot of it. But while groups like Corona­tion, Al­lan Gray, Ned­group and Sanlam are mak­ing hay while the sun shines, their busi­ness mod­els a re l i kely to come un­der in­creas­ing stress in the next decade.

In a new re­port gen­er­ated by con­sult­ing gi­ant Price­wa­ter­house­Coop­ers (PwC) en­ti­tled As­set Man­age­ment 2020, a brave new world, t he f i r m notes: “Amid un­prece­dented eco­nomic tur­moil and reg­u­la­tory change, most as­set man­agers have af­forded them­selves lit­tle time to bring the fu­ture into fo­cus. But the in­dus­try stands on the precipice of a num­ber of fun­da­men­tal shifts that will shape the fu­ture of the as­set man­age­ment in­dus­try.” Here is what the in­dus­try will look like in 2020 in the eyes of PwC. A FIC­TIONAL TRANS­AC­TION It’s 11 March, 2020. As Wei boards her train in the sub­urbs of Bei­jing, head­ing for her of­fice in the cap­i­tal of the world’s big­gest econ­omy, she checks her mo­bile de­vice.

She has been sent a mes­sage from in­ter­na­tional dat­ing com­pany eMatch’s sis­ter site, eMatch In­vest­ments. The tech­nol­ogy-based f i nan­cial ad­viser has an­a­lysed her f inan­cial strat­egy and au­to­mat­i­cally matched her dat­ing style with the funds and fund com­pa­nies most likely to meet her fu­ture needs.

One of t he rec­om­mended f unds is the SearchCo As­set Man­age­ment (SAM) Global 80 Big Cities fund, so Wei clicks on her SAM app and plays a video t hat pre­sents key i nfor­ma­tion about the fund. Cal­i­for­nia-based SearchCo, an In­ter­net search en­gine used by more than half of the world’s pop­u­la­tion, moved into the f unds i ndus­try i n 2015, and by 2020 was reg­is­tered in more than 40 coun­tries as an in­vest­ment ad­viser.

She c l i c k s t o s elec t t he f und and t he f und is im­me­di­ately added to Wei’s eMatch In­vest­ments mo­bile ac­count. The or­der and pay­ment is han­dled by eCom­merce.com, SAM’s ser­vice provider in China. eCom­merce.com started out as an In­ter­net com­merce com­pany in China un­til it de­cided to take ad­van­tage of its dom­i­nant 2004 North Amer­ica po­si­tion and ap­plied its so­phis­ti­cated pay­ment pro­cess­ing sys­tems to other in­dus­tries, in­clud­ing as­set man­age­ment (AM). SearchCo bought a stake in eCom­merce.com in 2017 to han­dle pay­ment pro­cess­ing and trans­fer agency in the Greater China Re­gion.

As a re­sult of its new col­lab­o­ra­tion with SearchCo, eCom­merce.com by 2020 is start­ing to process trans­ac­tions in Europe and the US too. eCom­merce. com sends Wei’s or­der to her cho­sen fund provider, based in Ger­many, and deals with all the nec­es­sary back-of­fice pro­cesses. Asia Pa­cific Mid­dle East & Africa

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