Attendees at the IMEA Summits navigate disruption to the investment industry.
At the recent IMEA Product and Distribution Summits, the mood across sessions was focused, candid, and forward-looking. Panels brought together executives, product strategists, and distribution leaders to unpack some of the most pressing challenges and disruption facing the investment industry—and to explore how firms are navigating this shifting landscape. From the transformation of the advisor-client relationship to the rise of new product vehicles and regulatory complexities, a few clear themes emerged.
The Revenue Replacement Dilemma
One persistent undercurrent across discussions is the ongoing pressure to replace revenue lost from the decline of traditional mutual funds. The industry has witnessed a significant transition in assets toward ETFs, SMAs, model portfolios, and alternatives. Yet, despite their popularity, these vehicles often bring lower margins—and replacing mutual fund revenue at scale remains a steep climb.
While ETFs are booming in terms of volume and product launches, the monetization path is murky. Panelists acknowledged that for many firms, even aggressively growing ETF or alternative platforms won’t fully compensate for revenue compression. As one speaker put it, “You would have to sell a lot more just to match the bucket—and even more to grow it.” The challenge isn’t just distribution; it’s financial sustainability.
Active ETFs, Clones, and the Share Class Debate
The rise of active ETFs was another recurring topic, with many firms now offering multiple versions of their core strategies across mutual funds and ETFs—often referred to as “clones,” “siblings,” or “cousins.” These bring new challenges: aligning pricing, educating boards, navigating operational hurdles, and avoiding internal channel conflict.
Despite these complexities, active ETFs are increasingly viewed not just as an option, but as a strategic necessity. As flows continue to shift in their favor, panelists debated whether firms should launch standalone ETFs or pursue the emerging ETF-as-a-share-class model. As regulatory frameworks continue to develop, many firms are pursuing optionality—filing applications where strategic, experimenting with new structures, and maintaining open dialogue with the SEC.
The Managed Accounts & Model Marketplace Revolution
Perhaps no area has evolved as rapidly as the model marketplace. Once viewed as a niche solution, models now play a central role in both scaling advisor practices and enabling customization. Advisors, especially those focused on growth or succession planning, are outsourcing investment management to free up time for planning, tax strategies, and client engagement.
This has also shifted expectations for asset managers: distribution teams must now support different advisor personas—some using turnkey models, others customizing portfolios in-house. Success requires flexibility, segmentation, and above all, deeper support beyond product pitching. Practice management, data enablement, and timely thought leadership are now essential ingredients in the sales process.
Changing Dynamics in the RIA Channel
The RIA channel continues to grow in influence, but it’s far from homogeneous. Panels highlighted the emergence of distinct segments—from billion-dollar aggregators to emerging boutiques—each requiring different service models. Larger RIAs often expect institutional-style coverage and customized support, while smaller firms may benefit more from model portfolios and digital-first engagement strategies.
There was a shared recognition that “teaming” is no longer just something advisors do—it’s something distribution organizations must mirror. Successful firms are investing in “teams of teams” approaches, bringing together wholesalers, specialists, and digital tools in coordinated, data-informed ways. This is especially important in the RIA space, where buying decisions may be made by multiple influencers within a firm.
Practice Management as a Strategic Lever
One of the clearest takeaways from the Distribution Summit was the increasing importance of practice management resources as a way to deepen advisor relationships. Advisors are asking for more than product—they want help building their businesses, managing client expectations, and operating more efficiently.
Leading firms are leaning into this shift by creating tools, content, and training that speak directly to those needs. Panelists described practice management as a differentiator, particularly for advisors navigating growth, succession planning, or platform changes. The goal is to offer value beyond performance—and to become a trusted partner, not just a product provider.
The Digital Disconnect
While advisors are embracing digital engagement in some areas, many panelists pointed out a persistent gap: underutilization of asset manager websites. Despite significant investment in tools and content, firms continue to face challenges driving traffic and engagement.
Advisors increasingly prefer curated, in-context support—whether through platforms they already use or through direct relationships with sales teams. This digital engagement gap is an area where Corporate Insight continues to provide benchmarking and actionable insights to help firms better align their digital investments with advisor workflows.
Private Assets, Partnerships, and Platform Evolution
Private assets have officially gone mainstream. What was once a niche institutional product category is now a top focus across wealth channels. Advisors want access, clients want diversification, and platforms are racing to provide better infrastructure and education around alts.
But unlocking the private markets opportunity isn’t just about launching new products. It requires strategic partnerships—between traditional asset managers and private markets specialists, between product teams and technologists, and between firms that offer scale and those with niche capabilities. These partnerships are being driven by both client demand and structural pressures: the need for new sources of growth and margin in a competitive marketplace.
Looking Ahead: Industry Transformation in Real Time
As we reflect on the discussions and insights shared throughout the summit, one thing is abundantly clear: the investment management industry is at a pivotal moment of reinvention.
Final Takeaway: No Silver Bullets, but a Shared Sense of Urgency
Across all sessions, what stood out was the shared recognition that change is not optional—it’s already here. The investment industry is reinventing itself in real time to face this disruption. That means reassessing everything from product lineups and compensation models to segmentation strategy and advisor engagement.
At Corporate Insight, we’re continuing to track how these changes play out in real time—through our research, our conversations with clients, and our work benchmarking the digital and advisor experience. The playbook is still being written—but the message from IMEA Summit was clear: those who wait for clarity may find themselves left behind.
Michael Ellison is the President of Corporate Insight.
