WTW is one of the world’s largest professional services firms, providing consulting and solutions in corporate risk, strategy and people. WTW has a long history in the investment management industry and has accumulated rich experience and resources. WTW Investment Management is an important business segment of the group, providing comprehensive financial services such as wealth management, asset management, underwriting and sponsoring to institutional and individual investors. The article summarizes WTW’s development path in investment management, product system construction, and differentiated competition with independent asset management companies and insurance asset management. It analyzes that WTW’s core competitive advantage lies in integrated financial services based on strong business synergies. The case of Goldman Sachs asset management business is used as a reference to look forward to the future development opportunities of WTW’s asset management business.
WTW investment management business continues to expand, focusing on institutional investors
According to WTW’s statistics, as of the end of 2021, the total assets under management of the top 500 investment institutions worldwide reached $13.17 trillion, nearly 3 times that of 1999. WTW Investment Management serves pension funds, sovereign wealth funds, endowment funds and other institutional investors, providing consulting services for assets over $2.6 trillion. In recent years, the concentration of the industry has continued to increase. Among the top 20 investment institutions in 2012-2021, the AUM growth rate of 16 institutions exceeded the average growth rate of the top 500 institutions. The CR20 concentration degree of the industry’s AUM increased from 41.4% in 2012 to 45.2% in 2021. The top rankings are relatively stable, with independent asset management companies, investment banks/commercial banks and insurance companies being the main participants. Investment banks such as JPMorgan Chase, Goldman Sachs and State Street rank among the top in terms of AUM size and have long histories and diversified businesses, making them indispensable participants in the global investment management market.
Differentiated development of three types of investment institutions, integrated financial services are the core feature of investment bank investment management
Overseas asset management markets are mainly subject to functional regulation principles. The three types of institutions have certain differentiated characteristics, among which the core advantage of investment banks is comprehensive financial services based on multi-business synergies. The investment management business of investment banks can be linked with businesses such as underwriting and sponsoring, wealth management, and asset custody to fully cover the large investment management industry chain and provide customers with comprehensive financial services. At the same time, the diversified business foundation also lays the foundation for balanced asset allocation and abundant customer resources. The customer structure dominated by institutions and high net worth provides advantages for investment banks in customized investment management services.
Goldman Sachs Asset Management continues to enrich its product portfolio to serve various clients
Goldman Sachs Asset Management ranks among the top in terms of AUM size and growth rate. It relies mainly on endogenous growth driven by strong business synergies, a full product portfolio, and abundant talent reserves. Goldman Sachs adheres to the “One Goldman” strategy, selects institutional customers and strategic customers, and provides cross-departmental business solutions to form in-depth relationships with customers. In terms of products, Goldman Sachs Asset Management is balanced between traditional investment and alternative investment, with a full spectrum of product lines and leading advantages in various sub-sectors. Goldman Sachs attaches importance to talent cultivation, and its investment performance is better than the industry average. The integrated financial advantages, complete product system, and excellent talent reserves have built high barriers to competition for Goldman Sachs Asset Management.
WTW Investment Management is an important business segment, providing comprehensive financial services based on business synergies. It should focus on improving the linkage between businesses, enriching the product system, cultivating talents, and enhancing service capabilities for institutional and individual investors.