DST Research Finds Strong but Volatile Markets Cannot Mask Daunting Disruptions in Asset and Wealth Management Industry

In 2017, 71% of all net positive flows went to the top 10 asset managers while more than half of firms experienced net outflows

KANSAS CITY, MO – MARCH 20, 2018 – DST Systems, Inc. (NYSE: DST), a leading global strategic advisory, technology, and operations outsourcing company, today released its annual outlook on the key trends impacting wealth managers and broker-dealers and the associated implications.

Navigating the Storm

The white paper from DST's Research, Analytics, and Consulting group, Navigating the Storm: Modern Instruments for a New Era in Asset Management, examines how the emergence of young investors, technological advancements, and relentless pricing pressures are rewriting the rules for asset and wealth management. It outlines the four areas firms should address using business intelligence and advanced technology in order to remain viable long-term.

The white paper also makes four recommendations to help firms weather the disruptions:

  • Position products on core strengths: As significantly lower fees across all products and services continue to shape the industry, successful managers may need to position products around core strengths.
  • Develop competitive pricing models: Firms need to recognize that managers who can lower fees and still maintain margins will have a long-term competitive advantage. They should explore non-traditional fee structures.
  • Align relationship management resources on key business relationships: Firms will need to invest in data and analytics to jointly prioritize strategic relationships and develop customized support programs and highly targeted campaigns.
  • Deliver a seamless, personalized client experience based on data and analytics: More than two‐thirds of firms have invested in marketing automation platforms that enable leveraging the powerful combination of sophisticated technology and client insights.

"To thrive in the future, we believe that firms will need to re-invent their business models based on three value disciplines: product leadership, operational excellence, and customer intimacy," said Steven Miyao, Head of DST's Research, Analytics and Consulting. "This will require asset and wealth managers to make significant investment in internal and external business intelligence and advanced technologies to help inform product development, identify profitable relationships, and improve core competencies."

Miyao continued, "The long bull market has made it easier for many asset and wealth managers to be complacent. Executives at a few of the most forward-looking firms, meanwhile, see the urgency of the risks ahead and are shifting their mindsets to bring in new leadership with fresh ideas, advance product innovation efforts, and reimagine the client experience."

For more information on DST's Navigating the Storm: Modern Instruments for a New Era in Asset Management white paper, contact Myra Bartalos, Head of Marketing for Research, Analytics, and Consulting.

About DST
DST Systems, Inc. (NYSE: DST) is a leading provider of specialized technology, strategic advisory, and business operations outsourcing to the financial and healthcare industries. We assist clients in transforming complexity into strategic advantage by providing tools and services to help them stay ahead of and capitalize on ever-changing customer, business, and regulatory requirements in the world's most demanding industries.

Media Contact
Laura M. Parsons
DST Global Public Relations

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