Digitization and a shift towards more customized, investor-focused investments have disrupted traditional asset management distribution patterns. As a result, the means by which investment products reach clients is as critical as the products themselves. Growth will be the reward for those who have the understanding and ability to adapt their distribution strategies by market.
In partnership with Ignites, SS&C surveyed leading global asset managers to learn how they integrate sophisticated distribution channels, tailor engagement strategies and tap insights into local market dynamics as an imperative for growth.
The Fragmented Reality of Distribution Channels
Our survey results reveal commonalities in distribution channels across Asia/Australia and EMEA. Banks, institutions and insurance firms are in the top three for each, albeit ranked differently across each region. These traditional players remain central to distribution strategies, reflecting their established infrastructure, regulatory influence and trust among investors. At the same time, the growing prominence of direct-to-consumer models and independent broker-dealers, which ranked fourth and fifth in our results for these regions, signals a shift driven by increasing digital adoption, evolving investor expectations and the need for more personalized engagement. This evolution highlights how firms in these regions are beginning to balance the strength of established networks with the need to adapt to changing investor preferences and technological advancements.
In contrast, the US market has moved away from traditional channels like banks and insurance firms, which dominate Asia/Australia and EMEA regions, but don’t even rank in the top five for the US. Instead, RIA firms take the lead, followed by institutions in second place, with independent broker-dealers, wirehouses and regional broker-dealers rounding out the top channels.
The need to deliver products in a way that meets regional preferences is clear. But the real insight is more profound.
The Shift Toward Precision Engagement
An industry-wide transition from undifferentiated, broad-based outreach to precision-led engagement is the new imperative. The survey shows how asset managers are moving beyond conventional brand-focused campaigns in favor of data-driven marketing and product development strategies that seek to address specific investor needs and preferences. Such advancements underscore how distribution is evolving from a transactional activity into a strategically orchestrated, client-focused experience.
Some managers recognize the symbiotic relationship between data and digitally driven platforms as enablers of investor personalization and enablers of scalability and operational efficiency. Technology is critical. Data on how—and where—firms invest internally and/or seek outside help shows how varying outsourcing strategies can quickly close key capability gaps.
Conclusion
The future of asset management distribution will be defined by the convergence of innovative technology, rigorous data analysis and region-specific expertise. Firms that recognize and act upon these dynamics will be positioned not only to meet evolving investor demands, but also to create lasting differentiation in an increasingly complex marketplace.
To learn more about how leading asset managers transform engagement and distribution strategies worldwide, download our full "Expansion Under Pressure" report.