The company launches the Asset Management Exchange with $750 million of delegated hedge fund assets
Global - Monday 20 February, 2017 - Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today launched The Asset Management Exchange (AMX), an institutional asset management marketplace designed to fundamentally transform institutional investment for the benefit of the end saver.
According to the company, AMX is a global marketplace where asset owners (the buyers) can invest in external asset managers (the sellers) and where asset managers can access significant capital, cutting overall value leakage as a result. It will do this through a centralised back office and standardised fund infrastructure that bypasses the investment industry’s significant cost and resource duplication. In addition, it will deliver scale benefits to both sides of the market while increasing transparency and asset owner control.
Launching AMX, John Haley, CEO of Willis Towers Watson, said: “In the last twenty years, our lives have been transformed by innovation. Technology is breaking down barriers and challenging the inefficiencies which have burdened many industries for far too long. The resulting marketplaces tend to be fairer, quicker and more transparent. They give buyers better choice and control and open up new customers for sellers and can rapidly become global in nature. We recognise the power of this trend and are backing AMX to be a catalyst for change in institutional investment.”
Willis Tower Watson has committed a significant financial investment into the development of AMX which represents the continuation of its corporate strategy of building client-oriented solutions and operating marketplaces. The initial $750 million of capital on the exchange came from clients of the company’s Investment business, but it is expected that the offering will appeal to a broad range of the company’s clients.
Oliver Jaegemann, Global Head of AMX, said: “From today, the digital revolution has come to institutional asset management and it will never be the same again. AMX will make investment smarter, easier and cheaper to implement and monitor, for both buyer and seller, and significantly improve investment outcomes for the end saver.”
AMX is open to institutional asset owners to benefit from the economies of scale which will increase in line with asset growth. In addition the exchange takes on the development of product packaging allowing asset managers to focus solely on investing.
Oliver Jaegemann added: “We fundamentally believe that AMX is the smartest way to steward assets and Willis Towers Watson is already using the exchange for some of its delegated assets with more to follow soon.”
AMX, which launches first in the UK, will initially focus on providing cost effective and simpler access to hedge fund strategies, with additional asset classes following later in the year.
Chris Ford, Global Head of Investment at Willis Towers Watson, said:“We have long contended that intermediaries in the investment industry have taken too much out of the value chain to the detriment of the end saver. We believe AMX will change this by standardising and centralising the investment vehicles that managers and investors use thereby reducing overall costs and increasing marketplace transparency and competition. AMX will be our implementation solution of choice and we encourage asset owners and asset managers to use the exchange for the benefit of the end savers that we all represent.”
Notes to editors
AMX is designed to centralise the investment process making implementation and monitoring more efficient through:
- Reduced duplication of cost, resource and time
- Economies of scale in relationships with other service providers, such as market counterparties, clearers and prime brokers
- Standardised legal documentation
- Timelier and more accurate reporting through centralised data
- Reduced complexity via standardised infrastructure and a centralised back office.
AMX secures better pricing because of the buying power of the exchange by:
- Leveraging scale to negotiate lower fees with investment managers
- Centralising operating costs, such as custody and administration at the exchange, thereby lowering operating expenses.
AMX offers enhanced investor control via an independent risk oversight function and single portfolio interface to:
- Centralise and standardise compliance, minimising distractions from the core investment function while providing greater investor confidence.
About The Asset Management Exchange
The Asset Management Exchange (“AMX”) is an institutional asset management marketplace designed to bring greater efficiency to the institutional asset management industry globally and was established by Willis Towers Watson in 2017. AMX is a global marketplace where asset owners can invest in external asset managers and where asset managers can access significant capital, while cutting value leakage. AMX provides centralised back office and standardised fund infrastructure reducing cost and resource duplication, delivering scale benefits to both sides of the market while increasing transparency and asset owner control. For more information go to: www.theamx.com or @TheAMXchange.
Willis Towers Watson är ett ledande globalt försäkringsförmedlings-, teknik- och konsultbolag.
Med rötter tillbaka till 1828 verkar Willis Towers Watson idag på samtliga kontinenter med över 40 000 medarbetare i mer än 140 länder. Vi utformar och levererar råd och tekniklösningar som optimerar hantering av kapital, sak- och personrelaterade risker, anställningsförmåner, belöning och övrigt humankapital. Vi har erfarenhet från alla branschsegment och verksamhetsområden – över hela världen.
I Sverige inleddes verksamheten 1979 och idag är vi en av landets ledande rådgivare inom ersättningsrelaterade områden, pensioner och vidare förmåner, aktuariella tjänster (liv och sak), samt risk- och försäkringsförmedling inom sakförsäkringsområdet. Verksamheten finns på fyra orter – Stockholm (huvudkontor), Göteborg, Malmö och Karlstad - med totalt ca 185 medarbetare.
Willis Towers Watson är dessutom tillsammans med Max Matthiessen, Nordens ledande liv- och sakförsäkringsförmedlare. Välkommen att läsa mer på www.willistowerswatson.com