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Alpha Financial Markets Consulting plc
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===Serviceable Obtainable Market=== Here, the serviceable obtainable market (SOM) is defined as the United Kingdom asset management, wealth management and insurance consultancy market, and based on a number of assumptions, it is estimated that the size of the market as of today (23rd January 2023), in terms of revenue, is $2.17 billion<ref>= UK GDP x consultancy as a proportion of GDP x financial services as a proportion of GDP = $3.131 trillion x 0.84% x 8.3%.</ref>. The key structural drivers in the industry are as follows: '''Cost pressures.''' As the pressures on the asset management sector continue to increase, Alpha offers asset managers offerings to improving efficiency, reducing costs and upgrading legacy systems. That's probably the most important structural driver for Alpha, since ongoing cost pressures force businesses to seek major operational improvements, including upgrading their systems, which plays directly into Alpha's strengths. '''Regulatory demand.''' Regulations are continually changing and evolving and new ones introduced and this is extremely challenging for businesses to cope with on their own. One recent regulatory development is the US SEC's plan to revamp the rules around fund names, which would require funds to prove that 80 per cent of their holdings match their names. The proposal would apply to everything from 'core' and 'growth' funds to funds that invest in 'sin stocks' or investments that meet 'ESG' criteria. According to a media report, the SEC has estimated the cost to the fund industry at up to US$5bn. '''Growth in assets under management.''' Global assets under management run by money and wealth managers grew by 12% to US$112trn over 2021, according to BCG. This growth rate was well above the 7% average for the previous twenty year period and was supported by higher than normal net flow rates at US$4.4trn or 4.4%. '''Client and societal expectations.''' This factor has been made apparent through the ascent of ESG (environmental, social and corporate governance) in recent years, which resulted in the establishment of a new business practice for Alpha. # # '''Growth in assets under management.''' The asset and wealth management industry has grown significantly since 2008, with global aggregate assets under management standing at approximately $112 trillion at the end of 2021, compared to $38.5 trillion at the end of 2008. # '''Regulatory changes and cost pressures.''' Whilst overall AUM is growing, the asset and wealth management industry is experiencing challenges stemming from regulatory changes and cost pressures from the regulators and end clients. These factors are driving an increased focus by asset and wealth managers on improving systems, data quality and operational processes, in order to gain a competitive advantage, generate above average returns and reduce costs. This in turn has helped drive demand for the management consulting services provided to the asset and wealth management industry, across the spectrum of front, middle and back office functions. # The industry is subject to a wide range of regulatory and risk management considerations, which the directors believe will continue to drive growth in consulting services. In addition to the ever more demanding regulatory environment, the industry is having to react to requests from institutional and retail customers for greater transparency in reporting, engagement and accountability, which in turn is driving a growth in demand for more effective data systems and processes. # '''Consolidation.''' The pressure on margins within the asset and wealth management industry has also resulted in significant consolidation in recent years, as fund managers seek to increase assets under management, drive synergies and ultimately generate better returns through mergers and acquisitions. The value of global M&A deals completed in the sector totalled approximately $34.9 billion in 2015 and $71.3 billion in 2016, with many market commentators expecting continued consolidation through M&A in the asset and wealth management industry in the near future. This has created substantial opportunities and areas of growth for Alpha as it continues to provide M&A integration, operational and outsourcing consultancy services to increasingly larger and more complex fund managers.
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