Copying and distributing are prohibited without permission of the publisher
25 years, 25 CEOs, Marc Briol, CEO, Pictet Asset Services
06 February 2012
To celebrate its 25th anniversary, Global Investor/ISF interviewed 25 CEOs. The Pictet Asset Services chief explains why synthetic ETFs pose a danger to the asset management industry
Pictet Asset Services
Currently there are three issues in the industry that worry me most. The first arises from the current illusion of a free lunch around pricing. The major providers are following an unsustainable pricing model comprising pure asset gathering, lower fees and fewer staff.
Costs are increasing – notably around regulation and technology – while fees are going down. Our clients are second-guessing excessively competitive offers between providers such that the benefits of niche providers – flexibility, quality and personalised services – become less.
The second issue is around the lack of transparency on the profitability of asset servicers’ business model. It would help if the regulator took a closer look to see whether there are cross-subsidies hidden behind the industry currently. When you have captive clients it is easier to drop...
Access to this content is denied because you are not logged in. Please login to view this content
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.