The global asset management industry is being roiled by profound changes on multiple fronts. Market volatility has spiked in recent years amid economic uncertainty, while geopolitical instability – from trade tensions to regional conflicts – adds further unpredictability. Asset managers also grapple with generational shifts as younger investors (and employees) demand more purpose-driven, tech-savvy financial services.
Technological disruption is accelerating, with advancements like AI and digital platforms making traditional models less distinctive. Meanwhile, margin pressures are intensifying – rising costs and fee compression are squeezing profitability. In short, asset management firms find themselves under pressure to do more with less in a rapidly evolving landscape.
Against this backdrop, it’s getting harder for any asset manager to stand out. Products and strategies are increasingly similar, regulations and standards push toward uniformity, and even performance often clusters around benchmarks. When nearly everyone works off the same playbook, what truly differentiates one asset manager from another?
COMMODITIZATION AND THE DIFFERENTIATION DILEMMA
In today’s crowded marketplace, traditional differentiators are losing effectiveness. The commoditisation of financial products – accelerated by technology and easy access to information – means that offering the best performing fund or the latest strategy is rarely a lasting edge. For example, in Europe alone approximately 4,500 asset managers collectively offer nearly 70,000 funds. In such a sea of choices, incremental differences in products or performance can get blurred. It’s no wonder many firms struggle to articulate why a client should choose them over the next competitor.
There was a time when launching an ESG strategy or adding a sustainability overlay provided asset managers with a clear market edge. That time has passed, too. A proliferation of ESG-labelled products, increasing regulation, and growing scepticism around greenwashing have levelled the playing field. The margin of differentiation once enjoyed by early movers has diminished.
This ‛differentiation dilemma’ has become a central strategic concern. If products, services, and even pricing are hard to distinguish, asset managers must look inward for an edge. This is shifting attention to something more intangible yet powerful: the firm’s core identity – its values, purpose, and brand. As the latest research indicates, a distinctive identity rooted in genuine values creates meaningful separation from competitors. In other words, when offerings look alike, who you are matters as much as what you sell.
IDENTITY AS A STRATEGIC ASSET IN ASSET MANAGEMENT
Every asset management firm, like every individual, has a unique identity. This identity is the sum of its deep-rooted cultural DNA – its fundamental values, core beliefs, and raison d’être (reason for being or in short, purpose). What truly distinguishes a company isn’t simply its products or services, but these ingrained elements that shape everything it does. In fact, an organisation’s identity today is the culmination of countless decisions and experiences over time, forming a narrative about why it exists and what it stands for.
A well-defined identity – expressed through a clear purpose and values – provides a constant North Star when markets are stormy. In a world of constant change and frequent shocks of various kinds, it is one of the few remaining beacons that can align employees, clients, shareholders and stakeholders on long-term fundamentals. It signals to clients and stakeholders what the firm is fundamentally about, beyond financial performance. As Markus Kramer, co- author of RIBITM, the Responsible Investment Brand Index, and Managing Partner at Brand Affairs, puts it: “Purpose is the guiding North Star that unites and energises colleagues, clients, and stakeholders. It helps them understand the company’s role in the world -and in the market.” Or in other words: Your external brand must be an authentic reflection of your internal reality. What you project to the world must mirror who you truly are at your core. In an environment where trust and consistency are paramount, identity has evolved from a peripheral consideration to a central strategic asset for asset managers.
Notably, RIBI – now in its seventh edition – shines a light on this trend. RIBI 2025 evaluated over 600 asset managers globally on how well they embed responsible investment into their brand identity. The findings underscore that firms with a stronger identity around their values and purpose tend to navigate the responsible investing landscape more effectively. Jean-François Hirschel, RIBI co-author and CEO of H-Ideas, makes the point: “A clear and well-articulated identity is an effective way to create alignment between asset managers and their clients. It reduces noise. It builds trust.”
A well-defined and authentic brand identity, anchored in thoughtfully developed values, drives behaviour and shapes organisational culture. In an era where products and services are increasingly commoditised, such differentiation becomes paramount. In short, identity isn’t just a marketing nicety – it’s becoming a decisive factor in long-term success.
“A CLEAR AND WELL-ARTICULATED IDENTITY IS AN EFFECTIVE WAY TO CREATE ALIGNMENT BETWEEN ASSET MANAGERS AND THEIR CLIENTS. IT REDUCES NOISE. IT BUILDS TRUST.”
Jean-François Hirschel,
RIBI co-author and CEO of H-Ideas
THE IDENTITY GAP: PURPOSE AND VALUES IN SHORT SUPPLY
If identity is so critical, one would expect asset managers to be rushing to define their purpose and values. Yet, the data suggest a significant identity gap. The latest RIBI report reveals that just over half (only 53%) of asset managers express a clear organisational purpose to anchor their identity. In other words, nearly half of firms lack a public statement of why they exist beyond making profits. Even fewer firms manage to articulate what they truly stand for – fewer than half (45%) demonstrate any distinctive values or beliefs that set them apart in the market. Perhaps more importantly, the majority list generic principles (e.g. client focus, integrity, excellence) that could describe any of their competitors.
Even among those who do proclaim a purpose, the quality of these statements is often mediocre. When purpose statements are graded on clarity and authenticity, the average score is just 2.4 out of 5. In plain terms, most asset managers’ purpose statements barely pass muster – plenty of room remains for improvement across the industry. Many statements are vague, uninspiring, or disconnected from the company’s actual strategy. This identity gap points to an underutilized opportunity. At a time when being ‛everything to everyone’ results in no distinctive identity at all, too many asset managers still hesitate to pin down who they truly are and what they stand for.
Why this hesitation? Culturally, finance has long put facts and figures first, often keeping softer topics like brand and purpose at arm’s length. The industry
naturally gravitates toward hard data and performance metrics for decision-making. But this creates a disconnect, because clients and employees are human – and human decisions are driven by emotion and values as much as by data. As the saying goes, ‘No emotion, no decision.’ Decades of research in neurobiology confirm that while people use facts to justify choices, it’s feelings that trigger the final decision. Asset management is no exception: trust and resonance often win the day when performance is uncertain. An industry that prides itself on quantitative acumen must recognize that qualitative identity factors carry real weight in stakeholder decisions.
Dr. Yusuf Oc, Associate Professor of Marketing at Bayes Business School, notes that “people evaluate brands in the same way they evaluate individuals:
through patterns of behaviour over time. Consistency is critical. It’s not about what you claim, but what you consistently show.”
The shrinking margins in this industry put asset managers under immense commercial pressure. One reaction to this might be to try to please everyone and chase all kinds of clients. However, this is destined to fail: it dilutes the company’s identity, fails to attract new clients and weakens the position with existing ones. The ‘No emotion, no decision’ concept highlighted above means that the decision to work with an asset manager is mostly driven by identity and cultural alignment. Therefore, it is imperative for asset managers to express their identity in a way that clearly highlights what makes them unique.
Recent events in the ESG investing space illustrate the cost of a weak identity. In the face of political or market headwinds, some firms have retreated from earlier ESG commitments, raising questions about whether those principles were truly embedded or merely marketing deep. By contrast, firms that held steady and maintained consistent messages across good and bad times signalled that their values were authentic, not opportunistic. This contrast shows how a shallow commitment to identity can quickly erode credibility. When a firm’s stated purpose or values crumble under pressure, stakeholders sense it was never genuine to begin with. Authenticity – sticking to your defined identity – is the litmus test. Without it, a firm risks appearing fickle or untrustworthy, especially as investors become more sceptical of ‛greenwashing’ and empty PR claims in finance.
The bottom line is that many asset managers have yet to fully embrace identity as a core element of strategy. But for those willing to close this gap, strengthening their purpose and values, the upside is significant. A strong identity is not just a defensive shield; it actively creates value. Let’s explore how.
‘NO EMOTION, NO DECISION.’
THE BENEFITS OF A STRONG IDENTITY
Why invest in crafting a clear purpose and values-driven identity? Because a well-articulated identity yields tangible benefits – both externally in the market and internally within the firm. In fact, a powerful brand identity built on authenticity can become a source of competitive advantage and resilience.
Key benefits include:
- Clear Differentiation: In a marketplace of lookalike products, a distinctive brand serves as a beacon that draws the right clients. Your identity is what makes you memorable. For instance, with thousands of funds available, a clearly defined brand helps an asset manager stand out in the crowd. As one report put it, “In this sea of choices, a distinctive brand serves as your beacon.” Firms that communicate a unique story and ethos give investors a reason to pick them over others.
- Trust and Credibility: Trust is the bedrock of asset management relationships – especially when performance dips. A strong identity built on genuine values fosters trust over time. Clients who connect with a firm’s purpose are more likely to stay loyal during rough patches. This is increasingly critical in the era of responsible investing: asset managers face intense scrutiny of their ESG commitments, and scepticism is high. Here, brand identity can act as a shield. If a firm embeds its environmental or social values authentically into its identity, it inoculates itself against greenwashing accusations. Consistency between what you profess and what you practice reassures clients that you mean what you say. In short, a credible identity earns the benefit of the doubt when challenges arise.
- Stronger Client Engagement and Loyalty: A clear and inspiring identity makes it easier for clients to choose and stick with you. When an asset manager communicates a compelling purpose – addressing why they do what they do – it resonates on an emotional level. Clients increasingly seek alignment with their own values and long-term goals. For example, a firm that says its purpose is “creating peace of mind for people and society” will strike a deeper chord than one that only says “generating long-term returns.” Appealing to both head and heart simplifies the decision for clients. It moves the conversation beyond basis points to something more meaningful. Firms that successfully combine technical excellence with emotional resonance become admired brands that clients feel good about investing with. This not only attracts new business but also keeps existing clients loyal through market cycles.
- Pricing Power and Growth Resilience: In an industry plagued by fee compression, a trusted brand can confer pricing power. Clients will pay a premium (or at least resist fee-cut demands) if they perceive unique value in the relationship. We see this dynamic outside finance as well – brands like Apple or BMW command higher prices due to their identity and quality perception. Within asset management, a strong identity can similarly justify fees by highlighting aspects like superior stewardship, client experience, or societal impact that others don’t offer. Moreover, loyal clients acquired
through shared values are less likely to flee to a slightly cheaper fund elsewhere. This loyalty and pricing flexibility offer a buffer to the bottom line when margins are under pressure. In essence, identity-driven firms can compete on more than just price or performance – they compete on trust and brand equity, which tend to be more enduring. - Reputation Protection: In the digital age, reputational threats spread at lightning speed. A single negative story or social media post can damage a firm’s image overnight. Here, a well-established identity is a bulwark. Firms with a positive, known brand can weather false rumours or one-off issues far better than those with no strong identity to fall back on. A trusted identity gives you the credibility to rebut challenges proactively, rather than scrambling in defensive mode. Without that, even baseless attacks can find fertile ground. Thus, investing in brand and identity is like reputational insurance – it won’t prevent all issues, but it can significantly mitigate the damage and speed of recovery when problems arise.
- Talent and Culture Advantages: The benefits of identity aren’t just external – they also supercharge the inside of the firm. A clear purpose and value system create a unifying culture that aligns employees around shared goals. When everyone from the C-suite to new analysts understands “this is who we are and what we stand for,” it drives cohesion and morale. This cultural strength has become crucial for talent acquisition and retention.
Today’s professionals (especially millennials and Gen Z) seek more than a pay check; they want meaning in their work and to be part of something larger. A compelling brand identity and mission can be the deciding factor in whether top talent joins your firm or goes to a competitor. People want to work for organizations whose values resonate with their own. Similarly, a purpose-driven culture tends to motivate higher performance from existing staff, who feel their work has real impact. - Finally, identity even plays a role in M&A success. This is an increasingly important advantage in an industry where one response to fee compression is to achieve economies of scale through M&A. Asset managers with a clear identity are more appealing partners, more successful when looking for an
acquisition and more valuable when being acquired. When firms merge, aligning their cultures and values is often the toughest hurdle. Deals are more likely to succeed if there is a clear, compatible identity to integrate, whereas misaligned cultures can derail even financially sound mergers. Put simply, identity is the glue that can hold an organization together through growth, change, and turbulence.
In sum, building a strong identity offers far more than marketing polish – it provides concrete advantages that speak directly to many challenges asset managers face. In the words of management Guru Peter Drucker “Culture eats Strategy for Breakfast.”
Differentiation, trust, loyalty, financial resilience, reputational safety, and human capital strength all flow from the same source: a well-founded purpose and value set that the firm lives by. The most successful asset managers understand that responsible investment “is not merely about product offerings but represents a fundamental expression of organisational purpose”. These leaders treat brand and identity as strategic assets, not afterthoughts, and they are reaping the rewards in a sceptical and demanding marketplace.
BUILDING IDENTITY FROM THE INSIDE OUT
How can asset managers strengthen their identity in practice? The core principle is that true brand identity starts from within. It must be anchored in the firm’s core capabilities and DNA, then radiate outward through its positioning and brand communications. Attempts to plaster on a trendy mission statement or copy a rival’s values are destined to ring hollow.
Instead, firms should uncover and articulate the identity that already exists in their culture, history, and strengths. Jean-Francois Hirschel advises, “Your brand’s true essence already exists within your organization… [the task is] to uncover and articulate your brand, not invent it from scratch.”
Below are some guiding principles for building an authentic identity from the inside out:
- Find Your Purpose (Your ‘Why’): Every firm needs a compelling answer to ‘Why do we exist?’ beyond ‘to make money.’ A strong purpose statement articulates the firm’s reason for being – the positive impact it aspires to create for clients, society, or the world. This should be rooted in the firm’s
heritage and vision. Importantly, a purpose must be genuine and believable. In an age of transparency, there’s nowhere to hide insincerity. If your stated purpose is just marketing fluff, stakeholders will see through it. A litmus test is to ensure the purpose resonates both emotionally and logically (head and heart), is concise and action-oriented, and truly reflects what the firm actually does. For example, “helping clients achieve financial security” says a lot more about identity than “maximizing returns for shareholders.” The purpose should guide strategy and be a constant reference point in decision-making. - Define Core Values That Guide Behaviour: If purpose is the ‛why’, values are the ‛how’ – the principles that guide how the firm operates and makes decisions. An effective values system is not a laundry list of buzzwords, but a focused set (ideally no more than four key values) that truly reflect the firm’s culture and differentiate it. To test this, see if at least one of your values clearly sets you apart from your competition. Too many firms publish generic values like ‛integrity, excellence, teamwork’ which, while positive, do little to make the firm memorable. Instead, choose values that
are authentic to your identity and specific enough to be meaningful. For instance, a boutique investment house might elevate ‛original thinking’ as a core value, while a large ESG-focused firm might stress ‛innovation for impact’. Values should also be actionable – they ought to influence everyday behaviour and decisions, not just live on a poster. They build an internal culture that, over time, clients will feel in their interactions. Notably, values should connect back to the purpose (forming a coherent narrative), and they should be oriented towards the long term, helping shape a resilient culture. - Ensure Leadership and Organizational Alignment: Identity must be embraced consistently throughout the firm. It’s not solely a marketing or communications exercise – it’s a strategic and cultural one. Leadership should champion the purpose and values in both words and actions, setting the tone from the top. But alignment goes further: every employee should understand the firm’s identity and how to convey it. When a brand story is not shared – when different team members give conflicting versions of what the company stands for – the message fragments and weakens. To avoid this, invest in internal engagement: involve teams in the development of purpose and values, provide training or guidelines on brand messaging, and weave identity into performance goals and hiring criteria. The goal is a unified voice and ethos. As experts observe, a brand’s strength is directly proportional to the consistency of its expression. When everyone from portfolio managers to client service reps is on the same page about ‛who we are’, the identity becomes powerful and credible.
- Communicate Clearly and Authentically: Articulating identity requires striking the right tone. The asset management industry often leans on technical jargon and cautious corporate-speak – but jargon rarely stirs the soul. To connect with clients (and employees), identity statements and narratives should be clear, human, and inspiring. Avoid burying your real message in consultant-speak. Plain language that resonates will do far more to engage hearts and minds. Remember, emotions drive decisions, and you can’t evoke emotion with boilerplate text about “maximizing stakeholder value” or “leveraging synergies.” Craft your mission, vision, and values in language that a broad audience can understand and connect with. Stories and concrete examples can help illustrate your values in action. And be sure to live up to what you say – authenticity is key. If you tout ‘client-centricity’ as a value, for example, ensure your policies (from fee structures to communications) consistently reflect that. Authentic communication builds trust; empty rhetoric backfires.
Building a strong identity is not an overnight project. It requires introspection, dialogue, and often a shift in mindset from focusing solely on short-term metrics to also nurturing long-term meaning. However, the effort is well worth it. A robust identity anchored internally and expressed clearly externally becomes a self-reinforcing asset: it attracts believers (clients, employees, partners) who in turn reinforce and propel the brand’s success.
Markus Kramer notes that, “True brand power flows from absolute integrity. You cannot – and should not – pretend to be something you’re not.” Integrity from the inside out is the foundation of any enduring identity.
“TRUE BRAND POWER FLOWS FROM ABSOLUTE INTEGRITY. YOU CANNOT – AND SHOULD NOT – PRETEND TO BE SOMETHING YOU’RE NOT.”
Markus Kramer
EMBRACING IDENTITY FOR LONG-TERM ADVANTAGE
The asset management industry’s current upheaval – economic swings, geopolitical tensions, technological shifts, and beyond – is forcing firms to rethink how they compete and thrive. In this context, identity has emerged as the next frontier of competitive advantage. It’s a lever that many in finance have yet to fully pull, given the historical emphasis on numbers over culture. But as we have seen, firms that define and live their purpose and values are positioning themselves to weather storms and earn deeper stakeholder trust.
For asset managers, this is both a challenge and an opportunity. The challenge is to break out of the commoditisation trap by doing the hard strategic work of self-definition – to ask, what do we fundamentally stand for? It means committing to a purpose beyond profit (echoing Peter Drucker’s insight that profit is like oxygen – necessary for life, but not the purpose of life) and aligning the organization around that purpose. It means choosing values that are real and unique, and having the courage to weave them into decisions, even when it’s difficult. In short, it means infusing identity into the very core of the business, not treating it as a veneer.
The opportunity, however, is immense. With so many players slow to adapt, an asset manager that truly embraces identity can leap ahead. When products
and strategies become hard to tell apart, a strong identity is a durable source of differentiation that competitors cannot copy overnight. It engenders loyalty that outlasts performance cycles, builds reputational capital that money can’t buy, and creates a purpose-driven culture that will attract the best minds (and hearts) to your firm. As the authors of RIBI 2025 observe, in today’s environment brand has “evolved from a peripheral consideration to a central strategic asset” for asset managers. It’s time for the industry at large to recognize that reality.
In conclusion, an asset manager’s identity – its clear beliefs, purpose, and inside-out differentiation – may well determine the winners of tomorrow.
Firms that cultivate a strong, authentic identity will not only navigate the current headwinds more effectively, they will also contribute to restoring trust in finance by showing what they stand for.
The path to competitive advantage is no longer found solely in algorithms or quarterly alpha; it runs through the human heart of the organization. In a world full of uncertainty, knowing who you are and why you exist is the ultimate anchor. Firms who leverage that anchor will find steady footing to innovate, inspire, and lead in the years ahead. It’s an investment that pays dividends in resilience, reputation, and growth – truly building solid alignment between the firm and its stakeholders.
