Building the future of the institutional investment industry.

NAV Shapes

How can digital ecosystems solve the innovator’s dilemma for asset managers?

AMX is evolving

NAV Shapes
LATEST INSIGHTS

Cost efficiency is one of the greatest concerns for pensions decision makers

SHARE

Cost efficiency is one of the greatest concerns for pensions decision makers

SHARE

Over 80% concerned about cost efficiency. More than three quarters concerned about transparency. Over 70% worried about time wastage

 

  • Over 80% concerned about cost efficiency
  • More than three quarters concerned about transparency
  • Over 70% worried about time wastage

 

More than four out of five pensions decision makers worry about cost efficiency, according to new research from AMX, the first open architecture marketplace for the buying and selling of asset management services.

 

The research, which surveyed 200 individuals with investment responsibilities for pension schemes, also found that three quarters (74%) are concerned about time wastage, while 77% worry about the level of transparency they have regarding the funds they choose to invest in. Over a quarter (26%) are not confident about the level of transparency that they have with regard to operational costs incurred by managers.

 

Oliver Jaegemann, Global Head of AMX, commented: “These concerns surrounding costs, time and transparency come as no surprise to us. The investment management industry model is completely outdated. When compared to the rate of technological change in other industries, the institutional investment industry has been virtually stagnant over the last decade.”

 

Unsurprisingly, 91% of respondents considered fees to be an important consideration when selecting an active asset manager for their company’s pension scheme, with 85% of respondents also citing reputation of the firm and past performance of the product (84%) as important.

 

“It is clear that an industry transformation is long overdue. We are committed to challenging the inefficiencies and complexities in the industry through the creation of a new marketplace. It is quicker, more transparent and cost efficient, and benefits all stakeholders: investors, managers and the end saver. Whilst there is still a long way to go, we are confident that AMX can play a part in revolutionising the industry.”

About the research
 

The research was conducted in April 2018 by OnePoll, surveying 200 individuals with investment responsibilities for pension schemes, with the following job titles: In-house investment team, Independent trustee/ Trustee, Chair of Trustees / Chairman of Trustees, CIO / CFO, Director, Head of Pensions, Group Pensions Director, Investment Manager/Director and Pensions Manager/Director.


Continue Reading

Tax inefficient fund structures lost UK DB schemes £256m in 2019 – what is the solution for the institutional investor?

Article,

right-arrow-icon

How can good operational governance increase efficiencies?

Article,

right-arrow-icon

© 2021 AMX. Rights reserved.