Funds Industry Report - Flipbook - Page 33
Eoin Motherway The Asset Management Exchange
Eoin Motherway
The Asset Management Exchange
Ireland Country
Head of AMX
The Asset Management Exchange standardises, centralises and streamlines the process of
investing so it works better for everyone. It
provides a multi-asset institutional platform
delivering cost and operational efciencies.
Today there are 55 pension funds and 22 asset
managers using AMX to streamline the
process of investing. Together that means
AMX have over $9 billion of assets under management, as at October 2019.
Institutional Platforms – Innovation
In A Traditional Industry
breakdown and asset owners are challenged
with knowing exactly where costs are incurred
and what is provided for the fees they pay. For
In the past decade, a high proportion of technology spend in the asset management industry has gone to servicing regulatory changes,
like MiFID II, or to support shifting client needs
for fund reporting. Now though, we may have
reached an inection point, with the signs
being that we have an opportunity to innovate.
In addition, institutional investors are becoming more demanding of their service providers.
They want greater clarity on the ongoing costs
of investment, including management and
transactions charges but also around transparency on issues such as ESG.
As a result, a number of themes have emerged
where platforms have the opportunity to drive
forward innovation:
Increasing transparency – Asset managers are
challenged with providing more granular cost
example,
passive
management
is
being
increasingly offered at near zero fees, but what
do clients actually get for this? If managers are
charging near zero fees, surely they are incentivised to cease providing anything extra (as they
normally would) that costs them time or
money, or to nd ways of making a prot elsewhere. With so many actors and elements in
the process, the challenge is to make the value
of the service offered transparent, which platforms can help achieve.
Finding efciencies – Asset owners are asking
asset managers for more: “Can new products
or solutions be launched?”; “Can you provide
this
type
of
reporting/service?”.
However,
before their vision of the future can be tackled,
the amount of complexity in the investment
service process, caused by many people and
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