Skip to main content
Press Release

Willis Towers Watson launches Asset Management Exchange

The company launches the Asset Management Exchange with $750 million of delegated hedge fund assets

N/A
N/A

February 21, 2017

Willis Towers Watson today launched the Asset Management Exchange (AMX), an institutional asset management marketplace.

ARLINGTON, VA, February 21, 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.

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 centralized back office and standardized 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.

“In the last 20 years, our lives have been transformed by innovation. Technology is breaking down barriers and challenging the inefficiencies that have burdened many industries for far too long,” said John Haley, CEO of Willis Towers Watson. “The resulting marketplaces tend to be fairer, quicker and more transparent. They give buyers better choice and control, open up new customers for sellers and can rapidly become global in nature. We recognize 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.

“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,” said Oliver Jaegemann, global head of AMX.

AMX is open to institutional asset owners to benefit from the economies of scale, which will increase in line with asset gth. In addition, the exchange takes on the development of product packaging, allowing asset managers to focus solely on investing.

“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,” added Jaegemann.

AMX, which launches first in the U.K., will initially focus on providing cost-effective and simpler access to hedge fund strategies, with additional asset classes following later in the year.

“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,” said Chris Ford, global head of Investment at Willis Towers Watson. “We believe AMX will change this by standardizing and centralizing 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 centralize the investment process, making implementation and monitoring more efficient through the following:

  • Reduced duplication of cost, resources and time
  • Economies of scale in relationships with other service providers, such as market counterparties, clearers and prime brokers
  • Standardized legal documentation
  • Timelier and more accurate reporting through centralized data
  • Reduced complexity via standardized infrastructure and a centralized back office

AMX secures better pricing because of the buying power of the exchange by:

  • Leveraging scale to negotiate lower fees with investment managers
  • Centralizing 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:

  • Centralize and standardize compliance, minimizing 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 a centralized back office and standardized 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.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for gth. With roots dating to 1828, Willis Towers Watson has 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

Contact Us
Related content tags, list of links Press Release United States