This article was first published in FundsPeople
In this op-ed in FundsPeople, BCG’s Jorge Colado, Managing Director and Senior Partner, reflects on why distribution has become one of the central pressure points for the asset management industry. Asset managers are investing more in sales teams, product specialists, content, platform support and client coverage, but that additional effort is not always translating into more consistent or profitable flows.
Colado argues that the issue is not simply higher distribution spend, but how that spend is allocated across clients, channels and products. As margins come under pressure, platforms and selectors gain influence, and the relationship with the end client becomes increasingly intermediated, asset managers need to rethink segmentation, coverage models and commercial discipline. The firms best positioned to capture growth will be those able to focus resources where they can have the greatest impact, support distributors more effectively and distinguish commercial activity from real progress.