In the dynamic landscape of asset management, attempting to stay ahead of trends can be the differentiator of success amongst peers. However, I’m not sure that anyone could have predicted higher interest rates and inflation to shape the financial environment we are currently in. It is therefore vital that Asset Managers ensure their products and services align to changing markets. It is equally crucial that distribution are able to audit the suitability of products against the market.

One of the notable changes since 2022 has been marked by rising interest rate and increased inflation. As the cost of living crisis unfolded, there has been obvious impact on investor behaviour, risk appetite and market expectation. Whilst many continue to hold money in cash, asset managers have had to adapt their strategies to tune of a concerned investor, and the sales team play a pivotal role in communicating this.

A comprehensive sales audit should examine the backbone of operations, looking closely at Requests for Proposals (RFPs) and how the Client Services teams communicate internally.  In times of market uncertainty, investors often turn to their service providers for guidance and reassurance. Additionally, with  Marketing & Communications teams, it is essential to look closely at interdepartmental collaboration. As such, firms should be asking themselves:

• How well is the sales team conveying the firm's adjusted strategies to clients?
• Are RFP responses aligned with the current market realities?
• Is client services equipped to handle inquiries arising from these changes?
• Are our communication strategies helpful to our clients and does it align with the sales team?

Whilst it is important to consider the above, the final part to a sales audit is looking operationally at technology. If you have the use of technology and software to help you in the sales cycle, has it been effective or could there be a better way to serve your business? Implement tools and analytics that allow you to assess the performance of your sales and distribution efforts in real-time. Leverage data to identify patterns, measure client engagement, and track the success of sales strategies in response to changing market dynamics.

In an era of rapid change, conducting a comprehensive audit of your asset management sales and distribution team is not just a best practice—it's a strategic imperative. By understanding the impact of market changes and ensuring that your teams are equipped to navigate these changes, you position your firm for continued success in an evolving financial landscape. Remember, adaptability is not just a trait—it's a competitive advantage.