Between consolidation, specialisation, risk management, wealth transfer and a few other delights, Swiss independent asset managers are facing a busy start to the new financial year. SPHERE therefore takes stock of the eight trends currently shaping the market. These will, of course, be discussed at the EAM Days, the sector’s major annual event scheduled for 3 September in Zurich, 7 September in Geneva and 22 September in Lugano.
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Consolidation proving slower and more fragmented than anticipated
The Swiss market for independent fund managers continues to consolidate, but at a slower pace than expected. The number of players remains high and, far from diminishing, fragmentation even appears to be holding steady despite repeated predictions of a wave of mergers.
Two approaches coexist.
A bottom-up consolidation driven by small asset managers joining larger structures via earn-outs, whilst gradually transferring their client base to the acquiring firms.
And a top-down consolidation orchestrated by a handful of already well-capitalised platforms, which are accelerating their external growth to reach critical mass.
Specialisation: a matter of survival rather than a strategic choice
The generalist model is losing ground to asset managers who build their differentiation around a specific client type – entrepreneurs, international families, expatriates – on specific wealth management expertise – succession planning, international taxation, family governance – or even on an asset class such as private markets or property. The question is no longer whether to specialise, but how to transform this expertise into a tangible value proposition and credible evidence for the client, in a market where areas of differentiation have yet to be secured.
The accelerated professionalisation of EAM structures
Driven by a corporate culture that has become a strategic asset in its own right, this evolution is transforming independent asset managers. They are no longer simply small firms relying on their founder’s network and word of mouth; they are establishing structured marketing, communications and client acquisition functions, whilst governance, decision-making processes, recruitment and remuneration are becoming levers as important as financial performance in uniting teams and supporting growth. This move up the organisational ladder is increasingly determining organisations’ ability to integrate new teams, carry out acquisitions and plan for succession.
The battle for talent hinges on integration, not just recruitment
Successfully onboarding a relationship manager – particularly as they transition from a banking culture to an entrepreneurial one – is becoming a key differentiator between platforms that retain talent in the long term and those that struggle to keep them. Beyond the mere transfer of assets under management, it is the support mechanisms – including mentoring, assistance with portfolio migration, dedicated teams, access to experts and clear governance – that determine how quickly a new employee becomes fully operational.
The inevitable end of the 60/40 model
The resurgence of multi-asset approaches, driven by the quest for diversification and the fading of historical correlations, is pushing fund managers towards alternative assets, private equity, private debt, infrastructure, property, commodities, crypto-assets, and towards more bespoke allocations, moving beyond the simple model portfolio. The line between active and passive management is also becoming clearer, with ETFs gaining ground in the most efficient segments of listed markets, whilst active management retains its edge in bonds, small caps and private markets.
The multi-family office is set to become a new standard
Driven by increasingly holistic client expectations – wealth structuring, succession planning, international taxation and family governance – the MFO raises the question of whether it constitutes a genuinely new category of service or merely an extension of the traditional wealth management model. Between a streamlined ‘core offering’ and a broader range of services whose scope has yet to be defined, the principle of ‘the more you control, the more you manage’ is gradually establishing itself as a driver of sustainable value creation, provided that the operational realities involved in this scaling-up are properly addressed.
Risk management: a driver of performance rather than merely a protective tool
Portfolio managers and institutional investors are moving towards a more dynamic approach to risk, seeking to identify concentrations that escape traditional methods and to integrate stress tests and scenarios directly into day-to-day portfolio management, rather than treating it as a peripheral function. New analytical and modelling tools facilitate this approach, with the aim of turning risk into a genuine lever for long-term value creation rather than a mere regulatory constraint.
The decline of traditional client acquisition channels
Network-based referrals are no longer sufficient to attract a new generation of clients who research, compare and expect a comprehensive wealth management approach even before their first meeting. This challenge takes on particular significance in Switzerland, where a significant intergenerational transfer of wealth is expected in the coming years, prompting independent wealth managers to invest now in content, digital visibility and new lead-qualification tools to attract this new generation of clients ahead of the competition, whether traditional banks or emerging platforms.