If something was clear at the XIV National Collective Investment Meeting, organized this Tuesday by APD, Deloitte and Inverco, it is that despite the accumulated volume in discretionary portfolio management since the entry into force of Mifid II, and that together with the advice represents more than 70% in the distribution of investment funds, it is a segment that still has a long way to go, as demonstrated by the fact that in the face of upcoming maturity of approximately 80,000 million in funds buy and hold released in recent yearsin the heat of the increase in rates by central banks, the sector faces the challenge of retaining savers who, in the absence of greater profitability in other financial products, such as deposits, chose to place their money in savings funds. very conservative cut, such as monetary or public debt. Now, with the reverse process of rate cuts, the challenge is to convince them that they should go one step further and delegate the management of their assets through profiled portfolios that allow for more efficient long-term returns.
A challenge, that of transforming savers into investors, which takes place at the same time as one of the greatest metamorphoses in the sector, with the technological revolution that artificial intelligence implies when profiling clients and managing portfolios, and with competition from passive management facilitated by increasingly easier access through new distribution platforms. The personalization of portfolios to the point of individualizing the options for each of the clients, which sounds like science fiction, will be a very real possibility in the future, and managers are already studying how these innovations land in their operational processes.
Digitalization and passive management that in Europe are already beginning to be a palpable reality and that will be a challenge for Spanish managers. Data provided by BlackRock shows the magnitude of the issue: 30% of investment funds in Europe are already distributed via digital platforms (with an expected growth of 10% annually), while portfolio management and advice account for 40%. % of the distribution in the high net worth channel, partly due to the overweighting of the United Kingdom and the Netherlands, where retrocessions in the marketing of funds are prohibited, something that the managers believe will end up being implemented sooner rather than later in the rest of countries.
So the push for portfolio management will be a fact that no firm will be able to leave behind to differentiate itself in the value chain for investors.
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