AllianzGI CEO takes aim at vertically integrated firms

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

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. AllianzGI to introduce 'outperformance' fee model to UK retail investors "Culture is one challenge," he said. "Tech-mi...