Dear adviser,
As the year-end finish line comes quickly into view, I wanted to provide a short update on insights sourced from a number of our recent market engagements.
Shared themes across the funds management industry
We recently hosted a dinner with 11 senior leaders from across the funds management sector. While the conversation was informal, open and engaging, there were some interesting and consistent themes that emerged across all parts of the sector.
- Investor and adviser interest in private assets is continuing to grow and this interest is being converted into new fund flows. We need to look at not only the quality of the providers, but also how to make the asset class more accessible to and understood by a wider range of investors.
- The popularity of the active ETF structure and how this might impact the ETF market and the investment advice space more broadly.
- The increasingly important role of data in the financial services sector. Many commented on growing demands to provide more data to numerous recipients and the broad range of organisations which are now accessing and relying on that data more frequently.
- While the promise of AI is permeating many aspects of our industry, its adoption as a means to achieve real business efficiencies has been patchy in some sectors, though there’s no turning back now.
- Diversity, equity and inclusion continues to be an important issue for the industry - many commented on the opportunity for greater cross-organisational collaboration to drive more positive outcomes in this area.
Fund manager and adviser feedback
Our recent business and market update to fund manager and platform staff in in Melbourne also reinforced many related themes. Despite the maturation and governance requirements of the managed account market, there’s still a significant growth trajectory, with many highlighting the over-supply of consultants supporting that growth. The need for greater collaboration between fund managers, platforms, asset consultants and research providers to better service growing advice practices was also topical. This last point is something we’ve observed increasingly amongst our own client base of research and managed account users, as they juggle the need to meet the objectives of more and more clients amidst the demands of running an expanding business.
Recent feedback sessions with our customised managed account clients highlighted their challenges and opportunities for 2025. Practice growth and acquisition was a recurring theme, along with the opportunities for business efficiencies which enable advisers to service more clients - all at a time when the need and demand for personalised financial advice is high and supply of new advisers to market is low.
What’s in store for 2025?
Zenith has recently passed its 22nd anniversary of serving advisers in our market, remaining strong believers in the value of quality advice – and there’s more that we can do. We’re committed to further strengthening our investment research and managed account service offering to reflect the changing needs of advisers, such as for our customised managed account clients looking for assistance with both portfolio construction and governance in addition to business growth initiatives, which includes better supporting their ongoing client engagement. We’ll do this via in-person, digital and event-based forums, recognising the diverse ways which advisers want to receive relevant information from service providers.
As 2024 comes to a close, we wish you and your teams a happy and safe festive season and a relaxing break. Thank you for your ongoing support this year and we look forward to continuing to work together in 2025.
Best wishes,
Jason Huddy
Managing Director
