abrdn's Brett Jollie calls it quits

Having overhauled the global investment manager's local business, Brett Jollie has finally confirmed his departure calling it a planned exit.

"It is something I've been working towards since last December when we announced the restructure of abrdn's Australian business."

"I have led this restructure, and now it has been executed, the final stage is for me to depart," Jollie said.

Jollie said he is not rushing into a new executive role - that he has the luxury of sitting back and assessing his options.

"The next step for me starts with taking a break! I'm off skiing in a few weeks, then off to Africa for three weeks," he said.

With no plans to leave the industry, after 14 years as head of abrdn, he is looking for a different type of job - one where he garners a portfolio of super fund, asset manager and wealth platform clients who are looking for advisory expertise as they sharpen up their value proposition.

Jollie believes the next decade will see significant structural change in the superannuation and funds management industries. This starts with the continued consolidation of the superannuation sector.

"There are approximately 145 APRA-regulated funds today and this is expected to contract significantly, down to somewhere between 10 and 50 funds in the years ahead. And this will have a profound impact on the funds management industry."

While the pool of capital in Australia will continue to grow, thanks to compulsory superannuation, there are real headwinds for fund managers.

"Fewer superannuation fund clients, declining revenue margins, insourcing of investment management, the continued trend to passive strategies, etc will all put pressure on fund manager profit margins.

"To survive in this environment fund managers will need to run efficient business models and provide a strong value proposition to their clients. And not all fund managers will survive in this environment.

Globally, many funds have already started restructuring as they prepare for further consolidation.

Abrdn is one of several midsized groups facing a jump in costs and outflows.

"Australian firms cannot afford to stand still," he said, adding that his business and investment management expertise puts him in pole position to know where the minefields are.

"We have chosen to restructure abrdn's Australian business today to ensure we have a streamlined, competitive, business going forward. I'm sure all fund managers will need to take a close look at their business structures in the years ahead."

The fund manager has partnered with SG Hiscock & Company - which will distribute its Australian suite of funds - and MSC Group - which assumes trusteeship and responsible entity (RE) duties across its Australian fund book.

"Partnering with SGH and MSC allows us to focus on bringing our global investment capabilities into Australia in response to the increasingly competitive nature of the market," he added.

"Streamlining our business through these partnerships will drive efficient, client-led, sustainable growth while maintaining a world-class offering and delivering the best outcomes for Australian investors.

abrdn remains committed to the Australian market through differentiated investment solutions, managed accounts, active ETFs, sustainable investment strategies and digital advice."

Some people remain on the ground to support these functions.

However, abrdn's Australian staff will now report to Ian Macdonald, APAC Chief of Staff and deputy chief executive for Asia Pacific.

Jollie's career with abrdn spans 23 years including the last 14 years as head of the local business.

Previous roles with the asset manager include head of distribution, chief operating officer, head of marketing UK, product manager, and head of investment operations.

He played a lead role in numerous corporate/M&A transactions, including the acquisition of Deutsche Asset Management Australian in 2007, the acquisition of Credit Suisse Asset Management Australia in 2009, the merger between Aberdeen Asset Management and Standard Life in 2017, and most recently, the restructure of abrdn's Australia business.