AllianzGI CEO takes aim at vertically integrated firms

Models need to be 'technology, distribution or investment-led'

Jayna Rana
clock • 2 min read

Andreas Utermann, chief executive officer of Allianz Global Investors, has said asset managers with vertically integrated business models are more likely to struggle than those with a single-focus ethos due to cultural and financial challenges.

Speaking at the launch of the firm's Staying Active: How to Regain Trust in Active Management report, Utermann said there are three types of models an asset manager can adopt to be successful: technology-led, distribution-led and investment-led. While these approaches can be successful on their own, he explained, around 85% of asset management firms are a hybrid of all three, which can create issues in the current climate of a weak economy and concerns around fees. "Culture is one challenge," he said. "Tech-minded people will have a very different culture to investment specialists and...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Is being Chartered worth it? Breaking down the perennial dissensus

Is being Chartered worth it? Breaking down the perennial dissensus

‘Many non-Chartered advisers are just as competent as those who are’

Hope Coumbe
clock 10 May 2024 • 4 min read
Andrew Goodwin: Financial advice and the Evangelista effect

Andrew Goodwin: Financial advice and the Evangelista effect

'Future of advice lies in independence, approachability and affordability'

Andrew Goodwin
clock 10 May 2024 • 4 min read
Aviva integrates robotic process automation into platform capabilities

Aviva integrates robotic process automation into platform capabilities

Robotic process automation removes need for client by client process

Sahar Nazir
clock 09 May 2024 • 1 min read