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CFA Institute Study Reveals Leaders Must Transform if Investment Industry is to Thrive

April 2017

April 09, 2017 | 9:30 | Dubai

The Future State of the Investment Profession study released by CFA Institute describes an industry at an existential crossroads. It warns that investment industry leaders who fail to transform their business models may jeopardize the future of their firms. The report provides a guide to investment industry leaders looking to adapt, however, and it is timed to coincide with the Putting Investors First campaign, a recurring CFA Institute annual initiative to focus the attention of the industry on the needs of investors around the world. Highlights from the report include

Key findings amongst CFA members in the MENA region:

  • More than 70% of MENA respondents foresee flat or contracting margins for asset management firms.
  • Industry consolidation to continue for the next 5-10 years.
  • Financial centres in Asia will have increasing influence in the investment industry in the next 5-10 years.
  • Investors will continue to increase their allocations to passive investment vehicles over the next 5-10 years.
  • Relationship building will be the most important professional skill in the industry, and is yet hard to find along with sophisticated knowledge of IT.


Key findings amongst global members:

  • 70% expect financial centres in the Asia Pacific region will become more influential
  • 84% expect industry consolidation
  • 70% expect to see more assets going into passive investment vehicles
  • 63% expect profit margins at asset management firms to remain flat or to contract
  • 57% expect institutional investors will look to reduce costs by in-sourcing more investment management activities
  • 55% expect globalization will offer new opportunities for the investment professionals, while 18% perceive globalization as a threat
  • 49% expect technologies will present new opportunities for investment professionals, while 23% see new technologies as a threat

The full report Future State of the Investment Profession is available at

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