2019 was a big year for AMX. We more than doubled the number of strategies on our platform from just 19 in January to now over 40. We are fast approaching 10 billion in assets and we expect 2020 to be an exciting year as well with lots of innovation and change coming towards us. Here are 5 industry trends that our team are very excited about.
Focus on tax efficient funds
In 2019 we had some lively discussions around governance gaps areas where improved governance standards can significantly impact the end investor outcome. For me the most significant gap is UK institutional investors investing in pooled funds and using the wrong fund structure. In 2020 we expect managers to respond to this and for the use of tax transparent vehicles to increase significantly.
Liquidity stress testing
In 2019 we saw a number of fund liquidity failures and increased attention on investment risk management. By September of 2020 ESMA requires all European investment managers to regularly stress test the liquidity of their funds. This will increase the need for access to quality data and independent risk oversight.
In 2020 we expect to see a paradigm shift in technology enablement. It’s about connection: business app to business app, acceleration of machine learning and artificial intelligence. We’ll see data flowing between businesses, partners and clients like never before. Those that understand this and we at AMX do, those that are willing to collaborate and partner will see the biggest benefits.
Improved substance behind ManCos
In 2020 we expect increasing scrutiny of the industry by the Central Bank of Ireland to ensure that those that are setting up management companies in Ireland have sufficient substance. That is the right levels of people, governance and capital. With the increased level of substance these ManCos we expect will have a greater quality of service, but also the cost and complexity of setting them up will go up.
We have never seen more demand for globalization in our industry than right now. It’s not just asset managers that are looking to distribute their products to investors right around the world. In
2020 we are also expecting continued demand from multinational pension schemes that are looking to satisfy the needs of their pension scheme members in
a cost-effective and efficient way.
The team at AMX wishes everybody a very happy and successful 2020 and we look forward to supporting you throughout the year.