Nicsa’s Strategic Leadership Forum will take place Feb 24-26. This year’s theme is “2021: The Year of the Relationship”. The program will focus on building foundations for authentic engagement with employees, advisors, investors, and the communities we serve. The virtual conference will feature 15+ hours of educational content covering all facets of the global asset management industry.
The speaker lineup features leading experts from a diverse set of asset management firms, broker dealers, and an extensive group of financial services firms.
Featuring:
Our full speaker line-up includes:
Bola Ajayi, Fidelity Investments
Ronice Barlow, Franklin Templeton
Robin Benoit, State Street
Cheryl Boyd, EY
Hans Brown, BNY Mellon
Jim Bumpus, Columbia Threadneedle
Gayle Coluccio, Aliter Investment Services
Marc Dextraze, Morgan Stanley
Jeff Duckworth, John Hancock
Sonja Formato, Foreside
Sharon Hughes, Envestnet, Inc
Jim Jessee, MFS (Retired)
Mark Leary, MFS
Patty Loepker, Wells Fargo
Shawn Lytle, Macquarie Group
Kevin Mahn, Hennion & Walsh Asset Management
Marc Mallett, Northern Trust
Mike McLaughlin, Wells Fargo
Connor O'Brien, O'Shares
Justine Phoenix, Nicsa
Alison Sanger, Ironwood Capital Management
Doug Sieg, Lord Abbett Family of Funds
Greg Weiss, Blackrock
Blair Williams, SS&C
Click here to preview the SLF Agenda, featuring 15+ hours of educational content. 2021 SLF registration is at the firm level, with unlimited registrations with your corporate pass. Check here to see if your firm is registered, or contact us to initiate a corporate registration.
Trade association president and CEO Jim Fitzpatrick explains why 2021 is 'year of the relationship.' Read the full article from Fund Intelligence here.
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A leader of one of the world’s premier providers of global investment management, risk management and advisory services, Robert Kapito is an industry innovator and thought leader on best practices in investment management. He was the recipient of the 2009 Joseph Wharton Leadership Award, the Marine Corps-Law Enforcement Foundation’s 2010 Semper Fidelis Award.
Mr. Kapito will speak directly to the Nicsa membership on trending issues facing the asset management industry during the 2021 Nicsa Strategic Leadership Forum on February 26. View more information about Nicsa’s Closing Fireside Chat with BlackRock's President & Director, Robert S. Kapito.
Mr. Kapito will share his views on the pandemic’s impact on global business, the return to work landscape, industry consolidation, technological innovation, product trends, and BlackRock’s commitment to cultivate diverse leadership within the asset management industry.
Check out the full agenda for the Nicsa Strategic Leadership Forum here, and click here for more information and to see if your firm is registered.
More About Robert Kapito:
Robert Kapito is President and a Director of BlackRock, a member of BlackRock’s Global Executive Committee and Chairman of the Global Operating Committee. He is responsible for day-to-day oversight of all BlackRock’s key operating units including Investment Strategies, Client Businesses, Technology & Operations, and Risk & Quantitative Analysis. Mr. Kapito is also a Director of iShares Inc.
Mr. Kapito serves as a member of the Harvard Business School Board of Dean’s Advisors and the Global Leadership Council at the University of Oxford’s Saïd Business School. He is President of the Board of Directors for Hope and Heroes Children’s Cancer Fund. Mr. Kapito is a former Trustee of the University of Pennsylvania and former Chairman of the UJA-Federation of New York.
Mr. Kapito earned a BS degree in economics from the Wharton School of the University of Pennsylvania in 1979, and an MBA degree from Harvard Business School in 1983.
Nicsa has been hard at work shaping the agenda for this year’s Strategic Leadership Forum. Planning is well under way and a terrific program full of rich, value-added content is taking form. Nicsa encourages all members to join us in tackling 2021: The Year of the Relationship at the Nicsa SLF from February 24 - 26.
The Strategic Leadership Forum is one of the most important efforts of the association, and Nicsa is extremely thankful for the group of talented industry leaders that have volunteered to help shape the content of this educational event.
We are especially pleased to have three industry visionaries at the helm to oversee the development of a stellar program. The Co-Chairs of the 2021 Strategic Leadership Forum Committee are:
Don’t miss out on this exceptional opportunity to access the industry’s most dynamic leaders, who will address the Nicsa membership as we enter another historic year for the global asset management industry.
Here’s a look at just a few of the industry thought leaders taking to the Nicsa stage this year:
Look for additional speakers in the coming weeks as we finalize our panels and keynote presentations.
Nicsa offers more than just a ten-thousand-foot view of industry trends. Our membership is dedicated to collaborating on the best practices that address real business applicability. The global asset management industry is clearly in the midst of an era of change and challenges, but the opportunities before us are tremendous.
This virtual event will serve to expand our reach and enhance our content in order to create a productive learning and meeting experience for our members. Nicsa strives to deliver high-quality educational content and to provide the tools to support engagement and collaboration on a wide variety of industry topics. For a look at Nicsa’s view on trends in the new year, read “Nicsa President: The Themes That Will Define 2021 in Asset Management” from Fund Intelligence.
Please secure your spot now to engage with the individuals and companies who are building best practices within our industry in 2021 and beyond. Register for the 2021 Strategic Leadership Forum today.
Nicsa launched its Diversity Project America in late 2018 to provide the industry with a bold pathway for action in the diversity and inclusion (D&I) space.
Amid the current movement to end systemic racism, the association recently presented the second installment of the webinar series Listen, Learn, and Lead, sponsored by Northern Trust. This project features executives from member firms of the Diversity Project North America and industry leaders.
Naadia Burrows, Chief Diversity Officer at Broadridge Financial Solutions, moderated the session.
"Throughout my tenure at Broadridge, I've had the opportunity to listen, not only with my ears, but also with my heart; learn, from so many individuals at various levels and professional disciplines; and lead, courageously, creatively, and confidently," Burrows said.
"It hasn't always been an easy road, but by seeking out mentors, sponsors, and allies, and making myself available for others in the same capacity, it has been a well-traveled road with lots of laughter, reflection, learning, and sometimes, disappointment."
WHEN AND WHERE AN ALLY CAN HELP
Kim Evans, Senior Vice President at Northern Trust, said that her career, which she started more than 25 years ago, was defined by allyship.
"I started when we were still dealing with a lot of physical securities," she said. "The role that I had when I started was called 'Security Runner.' I was taking securities from a secure window and running them back to the processing desk.”
"I wasn't sure if I could have a career in financial services. But having no prior knowledge in the industry, I needed allies every step of the way to move my career forward. I've needed mentors, allies, and sponsors to make my current role even possible."
THE IMPORTANCE OF MENTORSHIP
Noel Samu, Executive Director at J.P. Morgan, said mentors can expand your view of what is possible.
"A mentor has walked the path that you will walk," he said. "They have learned lessons for you and can share those experiences, so you don't have to make the same missteps. More broadly, you can expand from the experience, and the potentially elevated view of what you perceive is possible and what you can aim to work toward."
FUTURE IMPACT
Ingrid Jacobs, Vice President, Chief Diversity and Inclusion Officer at Eaton Vance, said that authenticity means that people approach change with a sincere heart even if they struggle with opinions they don't want to hear.
"Even if the sincere heart says ‘I don't believe in this,’ that’s OK. “I think that part of the process — being open and letting everyone have a say — is where so many companies struggle. And it's also essential to be persistent. You have to understand this is the longest run you'll ever take. It never stops. Just when you think you can't find it in yourself to keep going, you have to."
Boston, MA – December 15, 2020— Nicsa, a leading asset management trade association, today announced the winners of the 2020 Nicsa NOVA Awards, which recognize excellence in innovation and leadership within the asset management industry.
The 2020 award winners are as follows:
Lifetime Achievement Award
Paul Schott Stevens, President & CEO, Member of the Executive Committee & Board of Directors, Investment Company Institute (ICI)
Outstanding Service to the Fund Industry - Robert L. Gould Award
Michael Woodall, Chief of Operations, Putnam Investments
President's Award for Outstanding Service to the Asset Management Industry
Tyler Mathisen, Anchor/Correspondent/Program Host, CNBC
Strategic Leadership Award
Brian Jones, Executive Vice President, Envision Financial Systems
Liliana Robu, Principal, Financial Services Industry Leader, Deloitte Consulting LLP
Industry Innovation Awards
Innovation in Distribution | John McDonough, Head of U.S. Wealth Management Intermediaries, Invesco Distributors, Inc.
Innovation in Product Development & Marketing | DFIN: ArcDigital and the 'Add to Cart' Campaign
Innovation in Product Development & Marketing | Horizon8: valid8Me
Innovation in Technology | BNY Mellon: Fraud Hub
Innovation in Technology | State Street: State Street AlphaSM
Operational Excellence | JPMorgan Chase & Co. Corporate Investment Bank Securities Services Conversion Team
Emerging Leaders
Margaret Farquharson, Senior Director, Head of Exchange-Traded Funds, Nationwide
Patrick Horgan, Managing Director, Horizon8
Karen Lee, Vice President, PIMCO
Shrey Malla, Senior Director, Foreside
Ninon Marapachi, Head of Asset Management Relationships, Bank of America
Luis Ochoa, VP Strategic Planning, BNY Mellon Wealth Management
Andrew Reber, Development Manager, Asset Management & Alternatives, FIS
“We are very pleased to recognize the 2020 NOVA Award honorees, who exemplify Nicsa’s core mission and demonstrate dedication, excellence, and leadership within the global asset management community,” said Jim Fitzpatrick, President & CEO of Nicsa.
About Nicsa
Nicsa is a not-for-profit trade association striving to connect all facets of the global asset management industry in order to develop, share, implement, and advance leading practices. For over fifty years, Nicsa has promoted an open and collaborative environment, where members’ and partners’ deep expertise and unique perspectives have come together to help strategically implement and support the industry’s most vital issues. Click here for more information about membership.
Nicsa aims to help firms operating in all segments of the global asset management industry meet the changing needs of their clients by aligning and educating industry participants through formal education programs, interactive forums, networking opportunities, and initiatives such as the Diversity Project North America. The Diversity Project’s goal is to accelerate progress towards a diverse and inclusive culture in the asset management industry to deliver the best possible results for clients, reflect the society we serve, and ensure long-term business sustainability. Click here for more information on Nicsa’s Diversity Project North America initiative.
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Nicsa members received an in-depth look at current distribution trends during a Webinar Wednesday event moderated by Lesley Keefe, Managing Director at EY. The session, held early November, featured panelists from EY’s wealth and asset management business consulting practice.
During the second half of 2019 and early 2020, EY conducted research focused on two perspectives: asset managers as product manufacturers and wealth managers as their intermediaries. Nicsa’s Product & Distribution Committee participated in the initiative and were a key source of insights for EY’s research.
The study unveiled six key distribution trends, which the panel explored in detail during the session. Here are the key takeaways.
Christine Morath, Senior Manager at EY, said that digital tools will be essential in enabling human interactions, not replacing them.
“With the expected generational wealth transfer of $70 trillion over the next 25 years, building out relationship management models will be key, both for those incumbents and also for any new entrants in the wealth management space,” she said.
Morath said Europe is lagging behind the U.S. as far as digital interaction models go, with traditional, advisor-based distribution models continuing to dominate.
“In Asia-Pacific, we see a completely different story,” she said. “The digital appetite is much stronger, and data privacy concerns do not play as much of a role as they do in North America or Europe, so firms in the region are a little more flexible. They are also not faced with a significant legacy infrastructure and can build new platforms easily.”
From the asset management perspective, Desiree Schuewer, Senior Manager at EY, said digital interactions affect how asset managers distribute their product.
“They allow for lower cost distribution and impact the pricing of products, type of products distributed, investment strategies, and services,” she said, adding that the ongoing pandemic has put the adoption of digital tools in fast-forward.
Morath said asset managers’ global operating models must address local demands while meeting the needs of their primary markets. Worldwide, COVID-19 has put asset managers to the test in terms of technical infrastructure, digital interactions, and the availability of human support.
In the U.S., the largest, lowest-cost product providers are in the best position, while in Europe, asset managers face a fragmented market dominated by high-cost private bank channels.
The Asia-Pacific region differs between countries: Investors in Australia, Japan, and New Zealand tend to be cost-sensitive with a conventional understanding of wealth management. Singapore and Hong Kong lean toward a hybrid between traditional advisor-based models and a digital service approach, while China boasts strong digital channels and demand.
Schuewer said similar trends are occurring on the asset management side: “We’re seeing that global asset managers have to cater to several distribution models, local investor preferences, and regulatory requirements, which also include local product regulation and disclosures.”
The EY study revealed that exchange-traded funds (ETFs) and environmental, social, and governance (ESG) products continue to gain market share across the globe.
“The volume of product assets with ESG considerations has increased significantly, from around $1 trillion in the second quarter of 2019 to almost $7.5 trillion one year later,” Morath said. “In addition, a large majority of asset owners are selecting asset managers with ESG capabilities.”
Europe leads the way in this area, with robust product offerings and an advanced regulatory landscape. Uncertainty in terms of the regulatory environment presents a challenge for ESG investment in the U.S., while the APAC region lags behind both the U.S. and Europe.
Schuewer said ETFs continue to gain market share globally. Meanwhile, asset managers are working to make alternatives more accessible to retail investors.
EY’s research shows that broker-dealers and RIAs in the U.S. are making the move to a fee-based advice model, driving increased development in technology designed for financial advisors and the adoption of proprietary asset allocation models.
Schuewer said that for asset managers, the focus is more on providing holistic solutions and entering strategic partnerships than selling products.
“Asset and wealth managers are engaging increasingly with a limited set of strategic partners,” she said. “We’re seeing large asset managers that can provide a broad array of products being well-positioned, because they can provide the products required to meet the advisors’ needs, as opposed to a certain segment’s focus.”
On the wealth management side, Morath said firms are investing significant effort in ensuring the next generation of advisors reflects consumer demographics. These efforts include issuing incentives for mentorship, hiring diversity, and technological adoption.
Schuewer said there’s a different skill set required for asset managers today. Face-to-face models are losing popularity; therefore, online collaboration and digital know-how are increasingly valuable in distribution roles. In Europe, however, this shift varies based on country. In France, distribution remains primarily face-to-face, while German investors tend to be open to hybrid models of digital-human interaction.
Finally, Morath said there is significant activity in the RIA space on the wealth management side. “By the end of 2019, firms with $1 billion in assets under management firms represented 60% of all assets in the RIA channel,” she said. “In 2020, we’ve seen a lot more consolidation with more than 20 firms with $1 billion in assets under management being acquired.”
According to Schuewer, EY’s research shows that merger and acquisition activity continues across the globe.
“The one exception is China, which is an emerging market for distribution, and we’re seeing large asset managers trying to find the right target to provide manufacturing and distribution onshore.”
Nicsa members can listen to an archived version of the webinar here.
Note: Although the observations contained in this work represent the best thoughts of the individuals comprising the Nicsa panel, they do not necessarily reflect the views of Nicsa or any of its member organizations. Matters addressed in this work may touch upon legal or regulatory matters, however nothing herein is intended to be or should be construed as legal advice. You should contact your own counsel in order to obtain legal advice regarding these or any other matters.
The COVID-19 pandemic has highlighted the potential of technology and why it could reshape the asset management landscape. With a spotlight on digital client interaction and resiliency, asset managers are adapting to the increasing importance of technology, but the industry has a way to go in terms of intervention and innovation.
Former Nicsa Chairman of the Board Dan Houlihan, Executive Vice President and Head of Northern Trust Asset Servicing - Americas, recently discussed this issue in an interview with Asset Servicing Times. We'd thought we'd share Dan's insights on improving inefficiencies, current tech challenges, data analytics, and streamlined processes with the Nicsa membership.
Stay tuned on an upcoming webinar program addressing these themes.
Racial equity is a critical topic for the asset management industry with a renewed sense of urgency sparked by the death of George Floyd in Minneapolis earlier this year and the events that followed. The industry has acknowledged a shared responsibility to address inequity, as well as its impact to employees, investors, and the communities in which they operate. There is an acute need for asset managers and financial services firms to collaboratively develop best practices that can be onboarded, tracked, and measured.
Member firms of the Diversity Project North America participated in a Round Table on Advancing Racial Equity in Asset Management in October 2020. Forum attendees were C-suite business leaders representing a large array of firms in terms of size and business function.
They were invited to share open thoughts and authentic dialogue around advancing racial equity in the global asset management industry during a virtual, face-to-face discussion. Turning “learnings” into leadership was a key focus for Round Table participants. With reflection upon the social unrest that the nation has experienced over the past several months, the group shared examples of policies and programs initiated in direct response to the current landscape in the United States and around the world.
An executive summary report can be found here. We welcome your feedback and insights on this critical issue at [email protected].
#DiversityProject
#DiversityandInclusion
Nicsa members received a generous dose of regulatory oversight during a panel event moderated by Frank Maresca, Vice President of Broadridge.
“The SEC has been very busy this year, both proposing and enacting rules that impact reporting,” Maresca said. “It is interesting to examine how these rules converge in making information for investors more digestible and impactful, as well as furthering the use of technology to drive engagement and investor insight.”
The panel, which featured experts from Putnam Investments and Ropes & Gray LLP, was designed to help financial services firms worldwide navigate trends dominating the regulatory landscape. Areas of focus included the proposed modernization of fund reports and disclosures, reforms related to closed-end funds and BDC offerings, the status of Rule 30e-3, and disclosure improvements for variable insurance contracts.
Modernizing Fund Reports and Disclosures
“The SEC unanimously proposed amendments to Form N-1A and certain disclosure and advertising rules that apply to mutual funds and ETFs,” said Chelsea Childs, Associate at Ropes & Gray.
“Those proposals are intended to modernize the disclosure requirements by requiring only key information to be delivered to shareholders. Funds would then refer shareholders to the fund website for other information that the SEC has deemed less important, such as financial statements.”
Under the proposal, a new summary Annual Report (AR) and summary Semi-Annual Report (SAR) would replace the existing AR and SAR.
“This is a very significant change; therefore, it's going to be operationally challenging, requiring a lot of input and parties involved,” said Venice Monagan, Counsel at Putnam Investments. “But we know that the actual implementation is several years out, which makes it more feasible.”
The SEC has outlined structured requirements related to the order in which information is presented and also recommends the use of graphical elements.
“The biggest takeaway here is we are going from a report that could be over 100 pages to something that the FTC is envisioning to be three or four pages,” Monagan said. “This is a very radical change compared with what we now conceive of as a shareholder report.”
Closed-end Fund and BDC Offering Reform
Childs said the SEC also adopted amended rules and forms intended to streamline the registration, communication, and offering processes for closed-end funds and BDCs.
“There’s a lot to unpack in these reforms,” she said. “One main theme is that eligible funds are now allowed to rely on certain practices that previously were only available to operating companies.”
According to Childs, the reforms impact different types of funds in different ways.
“There are differences, of course, between BDCs and closed-end funds,” she said. “There are also differences between types of closed-end funds — whether the reforms relate to how they impact an interval fund or just a traditional listed closed-end fund.”
“Importantly, size matters here,” she continued. “Some provisions of these reforms apply to all registered closed-end funds and BDCs, but importantly, some provisions also apply only to seasoned funds.”
Childs defined a seasoned fund as current in its reporting requirements with at least $75 million in public float, or the aggregate market value of the equity of the fund that is held by people who are not affiliated with the fund.
“This public float concept also comes into play for the top tier, the largest category that we've got here, which are well-known seasoned issuers, or WKSIs. Because the reforms allow for different paths to registration for different fund sizes, it’s important to classify what universe of funds you have and which of these reforms the funds can avail themselves of.”
Disclosure improvements for Variable Insurance Products
Back in March, the SEC adopted Rule 498-A, which permits the use of a summary prospectus to satisfy Securities Act delivery requirements relating to variable insurance products.
"The Commission is taking this important step to improve Main Street investors' understanding of these products,” SEC Chairman Jay Clayton stated at the time. "With today's technology and the benefits of layered disclosure, investors should not have to work through hundreds of pages of disclosure to understand these products' risks, fees, and features in order to make informed investment decisions.
Childs said that the proposed new Rule 498-B would allow funds to satisfy their prospective delivery requirements under the Securities Act by providing material updates to shareholders throughout the year.
“That’s going to be done primarily through the shareholder reports and through supplements to the prospectus,” she said. “Initial purchases of shares, however, are still going to be required; funds will still have to deliver the full prospectus to an investor who is making an initial purchase, but existing shareholders and additional purchases can receive these more streamlined documents.”
“In order to rely on this proposed rule, similar to the summary prospectus rule, the fund needs to make its summary prospectus, SAI, and reports all accessible online, free of charge, on the fund's website.”
Rule 30e-3
Numerous asset managers that have gotten up to speed with proposed rule 30e-3, which permits funds to use a notice-and-access approach that they can use to deliver annual and semi-annual reports in lieu of mailing a paper report.
Monagan said Putnam is gearing up for the January 1, 2021, implementation date, upon which funds can mail a notice of the availability of shareholder reports on the internet.
“Our notice, which would go to direct shareholders, will inform them of the availability of the shareholder reports and give them the availability to opt-in, request hard copies, et cetera,” she said. “We plan on moving forward with this effort until it is clear whether this new rule proposal will become effective.”
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