WAM executives are increasing the proportion of annual investment capital they spend on digital and technology. However, with 43% planning to devote 25% or more, their digital investment plans fall short of global respondents, who indicate increased minimum spend of 55%. WAM executives will want to make certain that their future investments keep pace with the rapidly changing sector dynamics.
WAM executives look to M&A for a range of priorities
WAM companies are turning to M&A as the fastest route to deliver the transitional capabilities they need to augment and accelerate their growth agendas. Thirty-nine percent of WAM companies say they’ll be pursuing M&A in the next 12 months across a range of priorities, from technology to growth into adjacent businesses, to acquiring talent.
The outlook for M&A is more cautious, with a drop in the proportion of WAM companies looking to actively pursue M&A in the year ahead. With fees and margins under pressure, WAM companies that choose to use M&A will be focused on targets that support growth through new geographies, products and distribution channels, as well as scale to drive operational efficiencies.