AssetCo is primarily involved in acquiring, managing and operating asset and wealth management activities and interests, together with other related services.
- a lower return environment for investments due to interest rate dynamics;
- shifts to more passive investment products in traditional public markets and to private markets asset classes that can offer diversification and potentially higher returns;
- a reorientation from institutional to individual investors, as individuals have to take more responsibility for their financial future;
- a continuing drive by investors and regulators for lower fees and to ensure “value for money”;
- increasing regulation and the cost thereof;
- an increasing use of technology and a drive for digitalisation, particularly in consumer-facing segments;
- a greater focus on environmental, social and governance aspects and the nature of underlying investments; and
- an ongoing and increasing polarisation of the industry, including a consolidation among larger and medium-sized asset managers, driven by economies of scale, and the growth of smaller boutiques in specialist asset classes.
Following the loss of its key contract in Abu Dhabi in October 2018, the Company has scaled back its existing operations and cost base, whilst seeking new contractual opportunities. To date, no new contracts have been won and the Directors are currently reviewing the status of this legacy business.