Description
Ralph Verni currently serves as board chairman of the Eaton Vance family of mutual funds; as a member of the advisory board of Commonwealth Capital Ventures, L.P. venture capital funds; as a member of Zurich Financial's Investment Management Advisory Council; and as a member of the following professional organizations: National Association of Corporate Directors; Boston Economics Club; Commercial Club of Boston Leaders, Inc; The CFA Institute; and the Boston Society of Security Analysts.
Asset Management Industry Trends
A Discussion of What Lies Ahead
IDC Webinar
January 21, 2015
2:00 – 3:00 pm ET
Panelists
1
• Ralph F. Verni, Moderator
Independent Director
Eaton Vance Funds
• Joseph Craven
U.S. Wealth Advisory Chief Operating Officer
BlackRock
• John Siciliano
Managing Director, Global Strategy Lead
PricewaterhouseCoopers
PwC
Asset management 2020
Asset management 2020: A brave new world
2
January 2015
Year 2020
The landscape
Megatrends
AM Game changers
Demographic shifts
Climate change and resource scarcity
Shift in economic power
Technological breakthroughs
Rise of state-directed capitalism
Accelerating urbanisation
Huge rise in
assets and
shift in investor
base
New pressures
and priorities
Increasing
transparency and
regulation
Alternatives become more mainstream,
passives are core and ETFs proliferate
4
Asset Management moves centre stage 1
Distribution is redrawn 2
New breed of global managers 5
Fee models are transformed 3
Asset management enters the
21st century
6
PwC
Asset management 2020 – The six critical gamechangers…
3
1
Asset management
moves centre stage
No longer in the shadows of
its cousins in the banking
and insurance industries.
2
Distribution is
redrawn
Distinct regional fund
distribution blocks will form
allowing products to be sold
pan-regionally.
3
Fee models are
transformed
Major territories will have
increased regulation that
improves disclosure and
aligns interests with the
investor.
4
Alternatives become
more mainstream
Traditional active
management will grow at a
less rapid pace than passive
and alternatives.
5
New breed of global
managers emerge
With highly streamlined
platforms providing
targeted solutions for the
customer.
6
Asset management
enters the 21st century
Technology becomes
mission critical.
Asset management 2020: A brave new world January 2015
PwC
6. Asset management enters the 21st century
4
Asset management
players
• 40% of the top asset
managers are not
actively involved in
social media and only
15% of asset managers
active on social media
are interactive; and
• More than a quarter of
asset managers are
not sure whether the
use of mobile
technology for
distribution or
communication would
play a critical role in
their business.
Social media
Big data
Cloud
Digital intelligence
CRMs
Drivers
Tailored products
Accurate and timely
information
Cost reduction
Interactive communication
Efficiency and control
POTENTIAL NEW
ENTRANTS ?
Today Consequences Tomorrow
Asset management 2020: A brave new world January 2015
Panel Biographies
• Ralph Verni currently serves as board chairman of the Eaton Vance family of mutual funds; as a member of the advisory
board of Commonwealth Capital Ventures, L.P. venture capital funds; as a member of Zurich Financial’s Investment
Management Advisory Council; and as a member of the following professional organizations: National Association of
Corporate Directors; Boston Economics Club; Commercial Club of Boston Leaders, Inc; The CFA Institute; and the Boston
Society of Security Analysts. Ralph is a former Chairman, President and CEO of State Street Research & Management,
acquired by BlackRock several years ago. Prior to State Street Research, he served as chief investment officer and a
board member of New England Mutual Life Insurance as well as president and CEO of its subsidiary, New England
Investment Companies, now NATIXIS Asset Management.
Ralph is a graduate of Colgate University and the Columbia University Graduate School of Business.
• Joseph Craven, Managing Director, is Chief Operating Officer of BlackRock's US Wealth Advisory Group. US Wealth
Advisory is responsible for distribution, marketing and product management for BlackRock's open-end funds, closed-end
funds and managed accounts. He is responsible for contributing to business strategy and product management and
development issues, while coordinating all operating procedures for the group. Mr. Craven also oversees the finance,
operations and administrative functions of the group.
Prior to joining BlackRock in 2011, Mr. Craven led American Century's North American Institutional business. He began
his career as an attorney; served as Deputy Treasurer of the Massachusetts' Pension Investment Division and spent 9
years in the Institutional business at Putnam Investments in various senior leadership roles, which included heading their
large market defined contribution business.
Mr. Craven earned his AB degree in Economics from Brown University in 1980, and his J.D. from Fordham University Law
School in 1983
5
Panel Biographies (cont’d)
• John Siciliano leads the firm’s global strategy practice in the asset management industry. His expertise is in defining
strategic, business and operational challenges; outlining and assessing potential solutions; and leading management
teams to agreement on and implementation of business strategies.
John has over 30 years experience in the financial services industry as a senior executive at several prominent global
financial institutions. Prior to joining PwC, John served as Chairman of Avondale Strategies LLC, a provider of advisory
services to asset management firms; as well as a Senior Advisor to Greenwich Associates; Kingsland Capital
Management LLC; and Capital Position Ventures LLC. He was also an Advisory Partner at Grail Partners LLC.
Previously, John was CEO of the six independent money management firms, with $100 billion in AUM, owned by New
York Life (McKay Shields, Madison Square Investors, McMorgan & Company, New York Life Capital Partners, and
Institutional Capital). In addition, he led the company’s entry into the Fund of Hedge Funds business with the acquisition of
Private Advisors in Richmond, Virginia.
Prior to joining New York Life Investments, John was Managing Partner of Grail Partners LLC, a merchant bank focused
on investing in and providing advisory services to the investment management industry. During that period, he served as
the founding Chairman of Grail Advisors the first active ETF company investing in equities. Before joining Grail, John was
the Chairman, President and Chief Executive Officer of BKF Capital Group, Inc., a NYSE listed company; the head of the
global institutional business for Dimensional Fund Advisors and a Managing Principal of Payden & Rygel, as well as
President of its mutual fund company.
John has a B.A. from Pomona College and an M.B.A. from the Stanford University Graduate School of Business. He
serves on the board of the Kravis Leadership Institute at Claremont McKenna College and on the Board of Leaders at the
Marshall School of Business at the University of Southern California.
6
doc_484450368.pdf
Ralph Verni currently serves as board chairman of the Eaton Vance family of mutual funds; as a member of the advisory board of Commonwealth Capital Ventures, L.P. venture capital funds; as a member of Zurich Financial's Investment Management Advisory Council; and as a member of the following professional organizations: National Association of Corporate Directors; Boston Economics Club; Commercial Club of Boston Leaders, Inc; The CFA Institute; and the Boston Society of Security Analysts.
Asset Management Industry Trends
A Discussion of What Lies Ahead
IDC Webinar
January 21, 2015
2:00 – 3:00 pm ET
Panelists
1
• Ralph F. Verni, Moderator
Independent Director
Eaton Vance Funds
• Joseph Craven
U.S. Wealth Advisory Chief Operating Officer
BlackRock
• John Siciliano
Managing Director, Global Strategy Lead
PricewaterhouseCoopers
PwC
Asset management 2020
Asset management 2020: A brave new world
2
January 2015
Year 2020
The landscape
Megatrends
AM Game changers
Demographic shifts
Climate change and resource scarcity
Shift in economic power
Technological breakthroughs
Rise of state-directed capitalism
Accelerating urbanisation
Huge rise in
assets and
shift in investor
base
New pressures
and priorities
Increasing
transparency and
regulation
Alternatives become more mainstream,
passives are core and ETFs proliferate
4
Asset Management moves centre stage 1
Distribution is redrawn 2
New breed of global managers 5
Fee models are transformed 3
Asset management enters the
21st century
6
PwC
Asset management 2020 – The six critical gamechangers…
3
1
Asset management
moves centre stage
No longer in the shadows of
its cousins in the banking
and insurance industries.
2
Distribution is
redrawn
Distinct regional fund
distribution blocks will form
allowing products to be sold
pan-regionally.
3
Fee models are
transformed
Major territories will have
increased regulation that
improves disclosure and
aligns interests with the
investor.
4
Alternatives become
more mainstream
Traditional active
management will grow at a
less rapid pace than passive
and alternatives.
5
New breed of global
managers emerge
With highly streamlined
platforms providing
targeted solutions for the
customer.
6
Asset management
enters the 21st century
Technology becomes
mission critical.
Asset management 2020: A brave new world January 2015
PwC
6. Asset management enters the 21st century
4
Asset management
players
• 40% of the top asset
managers are not
actively involved in
social media and only
15% of asset managers
active on social media
are interactive; and
• More than a quarter of
asset managers are
not sure whether the
use of mobile
technology for
distribution or
communication would
play a critical role in
their business.
Social media
Big data
Cloud
Digital intelligence
CRMs
Drivers
Tailored products
Accurate and timely
information
Cost reduction
Interactive communication
Efficiency and control
POTENTIAL NEW
ENTRANTS ?
Today Consequences Tomorrow
Asset management 2020: A brave new world January 2015
Panel Biographies
• Ralph Verni currently serves as board chairman of the Eaton Vance family of mutual funds; as a member of the advisory
board of Commonwealth Capital Ventures, L.P. venture capital funds; as a member of Zurich Financial’s Investment
Management Advisory Council; and as a member of the following professional organizations: National Association of
Corporate Directors; Boston Economics Club; Commercial Club of Boston Leaders, Inc; The CFA Institute; and the Boston
Society of Security Analysts. Ralph is a former Chairman, President and CEO of State Street Research & Management,
acquired by BlackRock several years ago. Prior to State Street Research, he served as chief investment officer and a
board member of New England Mutual Life Insurance as well as president and CEO of its subsidiary, New England
Investment Companies, now NATIXIS Asset Management.
Ralph is a graduate of Colgate University and the Columbia University Graduate School of Business.
• Joseph Craven, Managing Director, is Chief Operating Officer of BlackRock's US Wealth Advisory Group. US Wealth
Advisory is responsible for distribution, marketing and product management for BlackRock's open-end funds, closed-end
funds and managed accounts. He is responsible for contributing to business strategy and product management and
development issues, while coordinating all operating procedures for the group. Mr. Craven also oversees the finance,
operations and administrative functions of the group.
Prior to joining BlackRock in 2011, Mr. Craven led American Century's North American Institutional business. He began
his career as an attorney; served as Deputy Treasurer of the Massachusetts' Pension Investment Division and spent 9
years in the Institutional business at Putnam Investments in various senior leadership roles, which included heading their
large market defined contribution business.
Mr. Craven earned his AB degree in Economics from Brown University in 1980, and his J.D. from Fordham University Law
School in 1983
5
Panel Biographies (cont’d)
• John Siciliano leads the firm’s global strategy practice in the asset management industry. His expertise is in defining
strategic, business and operational challenges; outlining and assessing potential solutions; and leading management
teams to agreement on and implementation of business strategies.
John has over 30 years experience in the financial services industry as a senior executive at several prominent global
financial institutions. Prior to joining PwC, John served as Chairman of Avondale Strategies LLC, a provider of advisory
services to asset management firms; as well as a Senior Advisor to Greenwich Associates; Kingsland Capital
Management LLC; and Capital Position Ventures LLC. He was also an Advisory Partner at Grail Partners LLC.
Previously, John was CEO of the six independent money management firms, with $100 billion in AUM, owned by New
York Life (McKay Shields, Madison Square Investors, McMorgan & Company, New York Life Capital Partners, and
Institutional Capital). In addition, he led the company’s entry into the Fund of Hedge Funds business with the acquisition of
Private Advisors in Richmond, Virginia.
Prior to joining New York Life Investments, John was Managing Partner of Grail Partners LLC, a merchant bank focused
on investing in and providing advisory services to the investment management industry. During that period, he served as
the founding Chairman of Grail Advisors the first active ETF company investing in equities. Before joining Grail, John was
the Chairman, President and Chief Executive Officer of BKF Capital Group, Inc., a NYSE listed company; the head of the
global institutional business for Dimensional Fund Advisors and a Managing Principal of Payden & Rygel, as well as
President of its mutual fund company.
John has a B.A. from Pomona College and an M.B.A. from the Stanford University Graduate School of Business. He
serves on the board of the Kravis Leadership Institute at Claremont McKenna College and on the Board of Leaders at the
Marshall School of Business at the University of Southern California.
6
doc_484450368.pdf