Tell me about the background/history of Iconomi

ICONOMI’s story began in 2016 when crypto was still largely unexplored territory—a fascinating new world but intimidating at the same time. Tim and Jani, the founders, saw an opportunity to bridge a gap, creating a platform that made it easy for people to start investing in crypto without navigating the complexities that often come with it.

That’s how ICONOMI was born. We were one of the first platforms to let people invest and manage their crypto investments without needing to be experts. Our mission remains to make digital asset investments and management simple, secure, and transparent for retail and institutional users.

What is the firm’s offering :

–              for retail clients?

For retail clients, our goal is clear: to make crypto investing accessible to everyone, regardless of their expertise. Users can easily invest in crypto portfolios that automatically index the market or a sub-segment of the crypto market. We’ve worked hard to make the process as straightforward as possible so anyone can manage their crypto portfolio without feeling overwhelmed.

Plus, we offer tools like automated profit-taking and stop-loss features to make the entire experience smoother and more user-friendly. More advanced retail users can also create and manage their own crypto strategy.

–              For institutional clients, including wealth managers and advisers?

We provide robust tools for wealth managers, advisers, and institutional investors to meet the growing demand for digital asset exposure. These include digital assets portfolio management, a white-label platform, custody, trading and reporting tools that make it easy for them to integrate crypto into their existing offerings.

Essentially, we help them unlock a whole new asset class for their clients.

How does the platform work for all types of investors?

The core of the platform works similarly for all investors. We take great care to pre-screen and only list compliant tokens as well as real time monitoring of each token liquidity. That is done in the background, without the users noticing it. Same is valid for arranging a secure custody of all crypto-assets on the platform.

Users focus on creating their own crypto investment strategies, set rules and automation to suit their goals or copy a strategy that aligns with their personal or business objectives. We handle the heavy lifting—like portfolio rebalancing and trade execution—while ensuring full transparency and control. We’re connected to most of the major exchanges, which means that our users get access to the best possible liquidity and prices when it comes to executing their trade orders. We at all times remain independent from trading platforms, as we side with the users.

What do cryptocurrencies offer to retail clients/institutional clients?

The role of cryptocurrencies has evolved significantly in recent years. While they were once seen mainly as a speculative asset class, the industry has matured, and crypto now represents an efficient way to diversify financially.

In essence it offers both segments the same – an opportunity for diversification and a way to mitigate economic uncertainties while appealing to forward-thinking clients looking for modern investment options. Bitcoin stands out of the pack, as it has reached a different status with institutional investors as well. 

Do you actually invest in cryptocurrencies directly?

Me personally? Of course. Up to a certain per cent risk-reward is acceptable, so I invest roughly 10 per cent of my overall portfolio. I am actually quite a conservative investor, maybe a bit biased on crypto.

We also invest in crypto as a company and hold roughly 20 per cent of our treasury in crypto. This simple strategy has paid off very well over the last eight years, and I would recommend that business owners take this opportunity if they have not yet explored it.

What is your offering using ETPs?

–              we don’t offer ETPs

Our offering is even simpler than an ETP. Our platform empowers users to create and manage any kind of crypto portfolio that fulfils the same goals as a crypto ETPs. Automated rebalancing, real time price information, custody, ease of use, transparency and diversification benefits … Everything is inbuild into our platform. On top of all this Iconomi allows a user to create and manage his own investment strategy – in a sense create his own “etp equivalent”. 

We offer tools for asset managers and institutional investors to build and oversee personalised crypto portfolios for their clients. At the same time, individuals can use our curated portfolios to begin their crypto investment journey. This solution makes it easier to include digital assets in modern investment strategies without depending on traditional ETP structures or IT providers.

How safe is an investment in cryptocurrencies for a retail client/institutional client?

Investing via a regulated/registered crypto provider should be safe nowadays. It is crucial to select providers that are registered with the local regulator. If an investor would take the de-fi route, it might get a bit more tricky.

Safety is a top priority at ICONOMI. We know it’s the first thing people worry about when considering crypto investments, exactly because of the nature of the assets. That’s why we’ve built our platform with security at its core. We work with trusted custodians and use cold storage for assets, among other measures, to keep funds safe from potential threats. Our security protocols are constantly updated and audited.

We’ve also ensured our tools are designed to help retail and institutional clients navigate the volatility of crypto markets. Diversification through automated portfolios, trailing stop loss or automated taking profit rules and others make it easier to spread risk and invest with confidence. We offer even more robust solutions for institutions, including compliance-friendly options and detailed reporting to meet regulatory needs.

How is custody managed through your platform?

Users on Iconomi have 24/7 access to all their crypto-assets, while banks still only work until 4 p.m. The majority of the assets are kept in cold storage to increase security. We also employ a multi-custody strategy and work with multiple custody providers. This allows the user to manage all his crypto-assets in one place while at the same time diversifying their custody and lowering the risk by not keeping “all eggs in one basket.”

How do you manage investments in multiple cryptocurrencies?

Our platform is designed for diversification and flexibility. Users can invest in multiple cryptocurrencies by either copying a strategy that matches their goals or managing their own custom portfolio. We offer access to 150 assets, including widely known ones like Bitcoin, Ethereum, and Solana. To limit exposure and enhance security, we make some of the more volatile assets available only through managed strategies.

Have you seen much appetite for financial advisers and wealth managers to offer cryptocurrency-based investments to their clients?

We’ve seen significant interest growth in crypto over the past few years. Also, on our platform, business accounts have grown exponentially since 2022.  There was a lot of hesitation in the early days, but now, financial advisers, wealth managers, and businesses embrace crypto as a legitimate addition to their clients’ portfolios. ICONOMI has played a role in this shift, providing the tools and education they need to navigate these waters. It’s been rewarding to see this adoption grow and to be part of the journey as the financial world embraces crypto.

It made my own struggles in getting across the Irish sea to visit in-laws seem a very minor inconvenience.

The impacts of climate change are not of course confined to the UK. In an exceptional (and exceptionally well-illustrated) article, journalists at the Washington Post wrote in December about accelerating rises in sea-levels along the US’s south-eastern seaboard. 

The impact is particularly pronounced at Fort Pulaski, Georgia, where average sea levels are now nearly 18 inches higher than they were in the 1940s. Nearly two-thirds of that change has come since 1980.

While the problem is particularly acute at Fort Pulaski, NASA projections show that in the coming decades many cities along the whole eastern seaboard will experience up to 100 more days of high-tide flooding each year.

Hollywood becomes Bollywood

The scale and reach of the changes driven by climate change are profound and global. In a ‘visual essay’ another group of journalists has shown how specific cities will feel in the years ahead.

Hollywood in Los Angeles currently has a temperate climate characterised by dry and hot summers. They report, however, that in less than 50 years, Hollywood will feel more like Bollywood with an arid climate that is more akin to New Delhi’s. Closer to home, London will remain temperate but will feel more like Washington DC and Atlanta than it does today.

Climate’s impact on economics

In some respects, some of these impacts might seem quite positive. Since we’ve seen temperatures of -1°C and lower already in 2025, temperatures that are on average 2-3 degrees warmer sound quite appealing. The problem is that the effects of climate change are diverse: warmer temperatures also bring more and more intense precipitation and stronger winds among other things.  And in cities that are already hot, another two to three degrees of warming can move daily activity from uncomfortable to life-threatening.

These impacts are now clearly affecting economics. In Florida, home and flood insurance has become dramatically more expensive, in part due to the risk of more frequent or more intense storms, as a result of climate change. California’s insurance market was already much diminished before the Palisades, Hurst and Eaton fires broke out in early January 2025. The impact of the fires is expected to lead to even less insurance coverage, and without insurance coverage, banks won’t issue mortgages. Globally, losses of USD320 billion due to catastrophes including extreme weather in 2024 were 30 per cent higher than the previous year.

In India, the Asian Development Bank warned in October last year that climate change could hit the country’s GDP by as much as 25 per cent within the next 50 years. A third of India’s GDP is linked to nature-related sectors. Increased frequencies of drought events are already negatively impacting agricultural output. Companies are also citing heat stress as a cause of reduced earnings.

In Europe, the European Central Bank recently estimated that the heatwave of 2022 caused crop yields to decline in that year, causing food inflation of around +0.6 to +0.7 percentage points. This impact lasted well into 2023. It’s already been speculated that ‘a material proportion of the debate at monetary policy committees will be taken up with discussion of how the economic forecasting model is going to interact with expectations of the next flood or wildfire season’.

Adaptation in a changed climate

It should not come as a surprise therefore that many companies, communities and even countries are already adapting to the climate change that is now with us and to that which is inevitably yet to come. By some estimates India is already spending more than 5 per cent of its GDP on climate adaptation. 

We are seeing evidence of this increased spending in our portfolio as well. We introduced a Climate Adaptation thematic as a part of our investment strategy early in 2024. Holdings include the Dutch environmental engineering business Arcadis as well as Advanced Drainage Systems, a US-based manufacturer of storm water drainage systems.  In recent earnings calls both companies have pointed to demand for their products and services increasing as clients look at adapt to increases in extreme weather^.

Other companies are also seeing growing demand for products and services that help make communities more resilient in the face of a changed climate. This includes demand for efficient cooling systems from Trane Technologies, water treatment and management equipment from Xylem and even fire-fighting equipment from MSA Safety. Most of MSA’s fire-fighting equipment is used in fighting fires in buildings. The company does also supply kit for fighting fires in rural areas – including to fire fighters working to extinguish the Palisades and Eaton fires.

We’ve written before about the increased prevalence of extreme weather that has now become a feature of our lives. But bear in mind that the changes we are currently seeing are associated with global average temperature rises of less than 1.5°C.  We can anticipate that the frequency, duration and intensity of these events will be dramatically worse from temperature rises of 2°C or more.

Matt Pells, Product Manager, Funds Administration, explains that the firm works with four of the world’s five biggest custodian banks supporting their role as transfer agents.

“Our clients use our software to run their administration on behalf of fund managers,” he says. The firm also supports wealth managers and offers a front-end advice solution which supplies a digital platform for advisers.

Pells says: “Pre-Covid, on the transfer agency side of our business our clients were all about growing their business using a core registry that was resilient and scalable.

“Post-Covid, that focus switched from our clients who had achieved that scale and then needed to lower their costs and their risks so we were reaching out beyond the core registers, developing enabling technology and orchestration – business process modelling – that would enable clients to reduce their costs.”

Here, Pells reports one client reduced their operational overhead by 60 per cent.

However, clients wanted to reduce their risks as well and the firm created a financial messaging platform, Babel, which trades over a trillion a year, designed to take out the risk and cost element of trading.

The firm found that their clients also wanted to increase the digital experience of their clients, encouraging them to self-serve more, so the firm built new tools for end users, only to find that they struggled with digital adoption, so the next step was to work with clients to raise digital adoption across their clients.

“Change takes a little while to flow through,” Pells says, diplomatically, adding: “In financial services in particular, people are used to doing things in a particular way.”

Looking forward, Pells says that the firm’s clients are seeing new technological developments with new start-ups based on distributed ledger technology (DLT) systems and blockchain and new providers claiming they can use AI.

“Our clients are sitting up straight and saying ‘we will be left behind here’ so they are coming to us to ask what we are doing in this space.

“Fund managers are saying we want new products and a quicker time to market and our clients used to come to us and say, ‘can you support money market funds or hedge funds’? Now that has swivelled, and they ask for features such as ‘can you support liquidity management or performance fees because they recognise that investors are driving new products.

“It’s not an asset management type solution that they want, but a menu of features they can pick and choose from.”

Pells predicts that as the technology advances, there will be more collaboration as there will be no one solution from one firm so partnering will be more important particularly as new asset classes, such as crypto, appear and they want to go in as quickly as possible.”

The change is driven by new and better technology. “The impact of DLT will be huge and we will move to tokenisation in our business over time, but this is a long term play for the industry as a whole so near term solutions are vital,” Pells says.

His firm is taking its core registries and breaking them out into modules so that rather than three big systems, the firm has a set of modular solutions and in that process it is also mindful of the arrival of artificial intelligence (AI) in the industry.

“AI needs data and in the right format, so we have an eye on the future examining how we prepare that data model so that when AI comes along, we know how best it can consume that data. We are thinking about the future as we move towards it step by step.”

BlackRock’s Thematics and Sectors team believe that as this transition unfolds, a number of the beneficiary sectors, beyond renewables, may have been overlooked and now present attractive potential alpha generating opportunities.

The BlackRock BFM Brown to Green Materials Fund invests in companies related to materials that are essential for the low carbon transition and opportunities created by decarbonising materials supply. The materials sector includes metals and mining, cement, chemicals, steel, and construction materials.

As the transition to a low-carbon economy unfolds, the investment team believes that companies in these industries that are decarbonising are expected to benefit from a re-rating as their sustainability risks decrease, resulting in these companies commanding higher multiples. The investment team expect these companies to benefit from lower operational costs and lower decarbonising capital requirements versus higher carbon peers.

The Fund will adopt the ‘Sustainability Improvers’ label under the UK’s Sustainable Fund Disclosure (SDR) regime. To qualify for the label, in complement to an objective of maximising total returns, the Fund targets a pre-defined sustainability objective to invest in assets that have the potential to improve environmental sustainability over time, determined by the potential of those assets to meet a robust, evidence-based standard.

The Fund will apply BlackRock’s proprietary ‘SDR Improver Assessment’ methodology to the companies in which it invests in. This methodology ensures that a minimum of 70 per cent of the Fund’s total assets are invested in equity securities that contribute to the Fund’s sustainability objective and its use of a SDR sustainability improvers label.

The Fund will be managed by Evy Hambro, Olivia Markham and Hannah Johnson in BlackRock’s Thematics and Sectors team, who manage the BGF Brown to Green Materials Fund. The investment team has been managing natural resources portfolios since their formation in 1991 and thematic portfolios since 2001.

Evy Hambro, Global Head of Thematic and Sector Investing at BlackRock says:

“We are targeting what we believe to be an overlooked segment of the value chain for lower carbon technologies. Companies which are high emitters today, but that have credible plans to decarbonise, could offer a significant investment opportunity. As the theme broadens out even further, these companies leading emissions intensity reduction efforts in their industries could benefit from a first mover advantage as the low-carbon materials market develops.

“This strategy has been designed to provide clients with exposure to the Brown to Green Materials theme, recognising that what could drive share prices from here, and what could make a positive difference to the world, is what happens moving forward rather than what’s already happened.”

Olivia Markham, CFA, Managing Director and Portfolio Manager at BlackRock says:

“Materials companies that best navigate the ‘Brown to Green’ transition could benefit from a re-rating in the valuation multiples the market is willing to pay for them. We expect global adoption of lower carbon technologies will drive stronger-than expected demand growth for materials required faster than anticipated, and this will result in higher materials prices and better-than-expected earnings for producers.”

The BFM Brown to Green Materials Fund has an ongoing charges fee (OCF) of 0.92 per cent for its D share class.

The firm writes that the new Fund meets the growing demand seen from UK wealth clients, building on a similar strategy, the BGF Brown to Green Materials Fund, launched in June 2023 for European investors, which has seen assets grow to ~ USD78 million. In the first year of the fund’s launch, there have been a number of highlights:

·        88 per cent of the portfolio is invested in companies on track with some or all of their decarbonisation goals.

·        76 per cent of the portfolio is invested in companies with targets to reduce emissions intensity by over 20 per cent in the medium-term.

·        6.4 per cent reduction in emissions intensity has been recorded on average from 2022 to 2023, as measured across portfolio holdings.

The firm writes that indeed, all Strategy Indexes delivered a positive return and the AH Macro Index was up 3.3 per cent for the year.

The KLS Arete Macro Fund was the top performing Macro UCITS fund in 2024, as well as one of the best performing liquid alternatives funds, returning 19.3 per cent over the year. The fund’s performance also compares favourably to traditional asset classes such as, global bonds (+4.7 per cent) and global equities (+19.2 per cent), the firm says. Other strong performers in the macro peer group include MontLake Oriel – P/E FX Strategy and Brevan Howard Absolute Return Government Bond.

The KLS Arete Macro fund’s outperformance was driven by the managers ability to be nimble around core views and positions and perform well amidst market turbulence, the firm says. In particular, returns were driven by Arete capitalising on both positive markets (notably in April and September) and more challenging markets (such as in June, October, and November) across China and China-related assets.

Since its inception in April 2012, the Arete Macro strategy has annualised net return of 9.2 per cent, annualised volatility 7.6 per cent, and Sharpe ratio of 1.0. Over the strategy’s 12-year history, it has proven to be a strong diversifier to traditional asset classes, with 0.12 correlation to global equities and -0.08 correlation to global bonds.

Looking ahead to 2025, markets are expected to shift from speculative to macroeconomic factors, influenced by US policy changes, Europe’s political fragmentation, China’s gradual deleveraging, and Japan’s exit from ultra-low rates, the firm says. These forces, combined with policy uncertainty, trade tensions, and frequent economic cycle fluctuations, will likely increase market volatility and open new opportunities for macro hedge funds. While traditional growth trends might provide guidance for top-down strategies, abrupt market rotations and shifting correlations will require flexible, tactical approaches.

Alex Ellerby, CFA, Senior Research Analyst – Hedge Funds, Kepler Partners, says: “The macro funds universe produced a mixed set of results in 2024 but with several shining lights within the pack. As we move into 2025, the opportunity set looks incredibly rich as we see increasing dispersion at a global and also regional level between economies. Macro funds are therefore front-of-mind for investors, and we are seeing increased interest in the strategy, against the backdrop of a broader growing bullish stance on hedge funds amongst allocators.”

With these strategies on the rise, Bloomberg polled over 150 quants, research analysts and data scientists in a survey conducted during a global series of client workshops to understand key trends and challenges in investment research.

Data coverage, timeliness, and quality issues with historical data was cited as the top challenge in the industry, with nearly two-fifths (37 per cent) of respondents selecting this option. This was followed by normalising and wrangling data from multiple data providers (26 per cent), and identifying which datasets to evaluate and research (15 per cent).

In line with these challenges, Bloomberg’s survey found that 72 per cent of respondents could evaluate only three or fewer datasets at a time, despite the need from quants and research teams to continually harness more alpha-generating data in today’s data deluge. The findings also show that the typical time it takes to evaluate a single dataset is one month or longer for more than half of respondents (65 per cent).

Firms are still trying to figure out their optimal strategy for managing research data in the face of the aforementioned hurdles. 50 per cent of respondents reported they currently manage the data centrally with proprietary solutions versus outsourcing to third party providers (8 per cent), with more than six in ten (62 per cent) of respondents preferring their research data to be made available in the cloud. Notably, 35 per cent of respondents also would like their data to be made available via more traditional access methods such as REST API, On premise and SFTP, indicating they prefer flexibility in the choice of data delivery channels.

“From in-depth conversations with our research clients, it’s clear there is a desire for new orthogonal datasets as well as a need to harness ‘AI-ready’ data. The journey from data sourcing to extracting alpha is difficult and the continuous ingestion, cleaning, modeling and testing of data is particularly challenging,” says Angana Jacob, Global Head of Research Data, Bloomberg Enterprise Data. “That’s why Bloomberg is committed to building out our multi-asset Investment Research Data product suite, targeted at quantitative and quantamental research, systematic strategies and AI workflows. Our datasets with modeled Python API access enable customers to reduce their time to alpha through deep granularity, point-in-time history, broad coverage and interoperability with traditional reference and pricing data.”

The report, based on a survey of 220 wealth-industry professionals, including investment teams, portfolio managers and financial advisers, reveals that 60 per cent expect their HNW clients will require some degree of personalization – either now or in the near future. Wealth management is evidently at an inflection point as it adapts to the evolving needs and preferences of individual investors.

In the past, personalisation in wealth management was a primarily niche offering, typically reserved for a select group of high-net-worth (HNW) clients. However, MSCI’s research suggests the democratisation of wealth management has transformed personalisation from a luxury to an industry standard, with technological advancements cutting costs and driving efficiency and scalability to provide bespoke portfolios to a much broader client base than ever before:

73 per cent of respondents named personal preferences – such as supporting the transition to net-zero or better corporate governance – as the prime reason wealth clients are seeking more personalized solutions.

58 per cent of respondents believe it is easier to build a new custom model than modify an existing one.

“The demand for personalised portfolios is growing across all client segments, from high-net-worth individuals to emerging affluent investors,” says Alex Kokolis, Global Head of Wealth at MSCI. “A broader set of clients now expect personalization in all aspects of their lives, including financial services, driven by trends in other industries. They want portfolios tailored to their unique goals, values, and preferences.”

As personal preferences gain importance in the composition of wealth portfolios, advisers’ clients are likely to seek assurance that their portfolios are aligned with their values – requiring wealth managers to go beyond the investment information traditionally reported to clients and finding ways to provide greater transparency into what the client’s capital is funding in both public and private markets:

Across all regions, wealth managers anticipate making larger allocations (82 per cent on average) to private assets over the next three years.

However, as interest grows in private markets, advisers (21 per cent) and portfolio managers (40 per cent) view their current solutions for this asset class as insufficient – compared to 59 per cent of investment teams.

Roughly half of all respondents (45 per cent) reported a limited understanding of private assets as the biggest barrier to making higher allocations.

Other notable barriers were the illiquid nature of investments (52 per cent) and the lack of transparency into the asset class (46 per cent) – with fears notably higher among financial advisers (73 per cent and 59 per cent respectively) as they seek to meet client demand for greater assurance and visibility. 

“In private assets, wealth management firms may be able to differentiate themselves through their education and learning offerings just as much as their investment offerings – both for advisers and end-clients,” Joseph Wickremasinghe, an executive director at MSCI Research, says. “Beyond that, tools or frameworks to standardise or streamline the due diligence process for private asset investments, or perhaps access to a slate of pre-vetted investment opportunities, may be another solution that end-clients find appealing. Being able to choose specific private investments from a selected range that have been deemed appropriate for the size of their allocation, their broad liquidity needs and investment preferences could increase their level of comfort with this asset class.”

Technology is at the heart of enabling transparency and personalization – but MSCI’s survey results suggests respondents feel many of their current solutions need to be upgraded to allow them to satisfactorily deliver on HNW clients’ expectations.

When asked to rank the areas in which their current technology solutions fall short, advisers conducting manual monitoring of client portfolios came in top at 45 per cent, followed by 42 per cent reporting a lack of dynamic insights on taxes, risk and other elements that impact decision making.

Wealth managers are also eager for a platform that can provide a single interface to manage all assets within all portfolios (39 per cent) and, of equal interest, is to design an appealing client portal (39 per cent).

“The demand for investment transparency has evolved significantly beyond simple monthly position reports, as today’s wealth clients seek deeper understanding of their investments’ alignment with personal values and financial goals,” Dhruv Sharma, an executive director at MSCI Research, says. “Digital platforms can help wealth managers meet this need by aggregating and presenting complex data in meaningful ways – from traditional exposure analysis across geographic and thematic dimensions to detailed insights into private asset classes, such as private credit and private equity. Wealth solutions providers add value by simplifying complex information without sacrificing depth, helping advisers address critical client concerns while providing clear visibility into portfolio exposures.”

The difference in the overall remuneration of men and women across the UK’s financial boardrooms during the four-year period decreased due to a marginal fall in remuneration for male board directors at UK firms, and a concurrent uptick in remuneration for their female peers.

Overall pay across UK financial boardrooms fell between 2019 and 2023 on an average basis but remained higher than the European average every year through the period.

North American non-exec directors were found to have received significantly higher overall remuneration than their counterparts in the UK, primarily as a result of receiving equity and stock options in addition to their fixed-fee compensation, which UK and EU boards do not offer for independence and objectivity reasons.

Martina Keane, EY UK & Ireland Financial Services Leader, says: “UK financial services firms have made clear progress towards more equitable pay for male and female board directors, but the pay gap between genders remains stark. While more men than women sit on committees and occupy chair roles, the fact that women on UK boards earn a quarter less than their male peers on average is a concerning reality. Global competition for talent at board-level is only growing, and UK financial services firms must do more to further improve gender equity in their boardrooms and balance remuneration levels.”

Global gender pay comparisons

Between 2019 and 2023, average remuneration for female non-exec board directors across UK financial services firms increased 7 per cent, from USUSD209,987 in 2019 to USD225,275 in 2023. During this time, remuneration for male non-exec directors decreased 1 per cent, falling from USD301,966 to USD299,076.

By comparison, over the same period, the gender pay gap across European financial services boardrooms increased by five percentage points, from 31 per cent to 36 per cent.

Between 2019 and 2023, average remuneration for female non-exec board directors across European financial services firms increased by 12 per cent, from USUSD164,584 in 2019 to USD184,477 in 2023. During this time, remuneration for male non-exec board directors increased at a higher rate of 21 per cent, rising from USD238,706 in 2019 to USD287,994 in 2023.

Over the same period, the gender pay gap across the boardrooms of the largest North American financial services firms narrowed two percentage points, from 7 per cent to 5 per cent.

Remuneration awarded to female non-exec board directors across North American financial services firms increased by 13 per cent, from USD287,465 in 2019 to USD324,250 in 2023. Pay awarded to male non-exec board directors increased at a slower rate of 10 per cent, from USD309,392 in 2019 to USD340,481 in 2023.

In 2023, female directors tracked across UK financial boardrooms earned USD75 for every USD100 earned by male peers, compared with USD70 for every USD100 earned by male directors in 2019, representing a five percentage point decrease in the gender pay gap.

In contrast, in 2023, female directors tracked across European financial boardrooms earned USD64 for every USD100 earned by male peers, compared with USD69 for every USD100 earned by male directors in 2019, representing a five percentage point increase in the gender pay gap.

Comparing this to female non-exec board directors at North American financial services firms, women earned an average USD95 for every USD100 earned by their male peers, compared with USD93 for every USD100 earned by male directors in 2019. This represents a two percentage point decrease in the gender pay gap.

Gender splits within UK, European and North American boardrooms

The gender split (as at the end of 2024) across directors of UK financial services firms stands at 45 per cent female and 55 per cent male, compared to 43 per cent female and 57 per cent male across European financial services firms more broadly.

Data for North American firms shows that at the end of 2023, board-level female representation was nine percentage points lower than the UK, at 36 per cent female and 64 per cent male.

Twenty-one percent of UK financial services firms have less than 40 per cent female representation at board level – the same vs the end of 2023. In comparison, 28 per cent of European financial services firms have less than 40 per cent female representation.

UK non-exec directors are paid more than European counterparts, despite fall in overall pay levels

Total levels of remuneration fell across UK financial boardrooms fell between 2019 to 2023 but remained higher than European boardrooms in every year through the period.

In 2019, UK non-exec board directors were paid 27 per cent more than their counterparts in Europe more broadly. Boardroom remuneration across the sector in the UK averaged USD269,802 per director (on mean), versus USD212,360 across Europe’s financial boardrooms.

However, the pay gap between UK non-exec directors and their peers in Europe narrowed over the period. In 2023, UK non-exec board directors were paid 10 per cent more than their peers across Europe more broadly, earning USD266,368 versus USD242,715 respectively.

This is due to mean remuneration for UK non-exec directors falling by 1 per cent between 2019 and 2023, from USD269,802 in 2019 to USD266,368 in 2023, while over the same period, mean remuneration for non-exec directors across Europe rose by 14 per cent, from USD212,360 to USD242,715.

North American non-exec directors are paid more than UK counterparts

UK board directors were paid less than their North American counterparts in every year from 2019 to 2023, with the pay gap between the UK and North America widening over the period.

In 2019, North American non-exec board directors were paid 12 per cent more than their counterparts in the UK. Boardroom remuneration across the sector in North America averaged USD302,814 per director, versus USD269,802 across UK’s financial boardrooms.

In 2023, non-exec board directors across North American financial services firms were paid 26 per cent more than peers in the UK, earning USD334,707 per director versus USD266,368, respectively.

Female non-exec board directors at North American financial firms, who are paid less than their male peers in the region, still earn 8 per cent more than male non-exec board directors at UK financial services firms, according to the latest available data. In 2023, remuneration for female non-exec board directors at North American firms averaged USD324,250, versus USD299,076 for male non-exec directors at UK firms.

Non-cash remuneration, including equity and options awards, was found to be a major component of overall remuneration awarded to non-exec board directors across North American financial firms. It is a practice that is virtually non-existent across UK boards, as the country’s corporate governance codes discourages non-exec directors from receiving any variable pay in order to maintain independence and objectivity.

In 2019, 54 per cent of remuneration awarded to non-exec board directors across North American financial firms was structured in non-cash terms through equity or stock option awards, rising to 56 per cent by 2023. While UK non-exec board directors receive less remuneration overall, average fixed-fee compensation is much higher than that awarded to their North American counterparts. In 2023, the average fixed-fee compensation for North American non-exec board directors, excluding non-cash elements such as equity or stock option awards, was USD156,811, compared with USD266,368 for UK non-exec board directors.

European market comparisons in non-exec boardroom remuneration

Across European markets, non-exec directors at UK financial services firms were the third most well-remunerated in 2023, behind directors at Swiss and Spanish firms. On a median basis, UK directors were paid USD199,856 in 2023, with Swiss and Spanish directors receiving USD338,621 and USD252,570 respectively, on median.

Absolute levels of female remuneration across European markets follow a similar pattern. Female board directors at Swiss, Spanish and UK financial services firms received the highest overall pay in 2023, at USD254,732, USD246,491, and USD191,000, respectively. Female board directors at Norwegian, French and Swedish firms received the lowest overall pay on median in 2023, at USD60,141, USD86,184 and USD108,883, respectively.

At 11 per cent, the UK has a smaller gender pay gap on median than Switzerland (49 per cent), Denmark (27 per cent), Germany (20 per cent) and Italy (14 per cent), and a wider gender pay gap than Spain (7 per cent). Financial services firms based in Norway have the narrowest board-level gender pay gap, with female board members at Norwegian firms paid 25 per cent more than their male counterparts (USD60,141 for women on median compared to USD48,233 for men).

European sector comparisons

Within the UK financial services industry, non-exec directors in the banking sector were paid the most in 2023, at USD296,785 on median, followed by directors at UK insurers (USD191,000) and UK asset managers (USD135,000).

Within the European banking sector, UK non-exec directors received the second highest remuneration compared with other markets in 2023. On median, non-exec directors at UK banks were paid USD296,785 in 2023, behind only directors at Swiss banks, who were paid USD653,160 on median.

Within the European insurance sector, UK non-exec directors received the third highest remuneration compared with other markets in 2023. On median, non-exec directors at UK insurers were paid USD191,000 in 2023. This was behind non-exec directors at Swiss and Italian insurers, who were paid USD338,395 and USD205,780 respectively, on median.

Within the European wealth and asset management sector, UK non-exec directors received the third highest remuneration compared with other markets in 2023. On median, non-exec directors at UK asset managers were paid USD135,000. This was behind non-exec directors at Swiss and Dutch asset managers, who were paid USD235,138 and USD168,564 respectively, on median.

UK non-exec directors with c-suite or ESG skillsets earn the highest

Levels of remuneration across the UK’s financial boardrooms also vary according to directors’ skillsets and professional backgrounds.

Between 2019 and 2023, non-exec directors across the UK’s financial boardrooms with prior experience in a c-suite role were awarded higher remuneration every year. Most recently, in 2023, non-exec board directors with c-suite experience were paid an average of USD304,562, compared to USD258,190 to those without c-suite experience.

A similar trend is evident among board directors with sustainability expertise; in 2023, UK non-exec board directors with sustainability expertise were paid an average of USD365,884, compared to USD269,523 to those without sustainability expertise.

Omar Ali, EY Global Financial Services Leader, concludes: “The landscape for boardroom remuneration across financial firms in Europe is shifting, and compensation is a key consideration for chairs as they build and maintain their boards in an increasingly global industry. This is particularly the case as chairs of UK firms contend with the more lucrative packages offered in North America, which often include equity and options awards.

“Offering competitive – and importantly, equitable – pay is essential to ensure that boards are equipped with the skills and diversity necessary to navigate evolving market risks and challenges. A structured review of regional pay disparities – and the steps that can be taken to address them – is now integral to maintaining the strength of the UK financial services sector.”

The launches are flagged with the filing of the Palmer Square EUR CLO Senior Debt Index ETF, focused on EUR and USD denominated AAA and AA CLO debt.  The ETFs will include an active multi-strategy ETF providing similar exposure to PSQO, the NYSE-listed ETF currently offered in the US by Palmer Square.

“The launch of these ETFs in Europe underscores our commitment to delivering cutting-edge solutions in complex investment environments across the globe. It is a natural extension of our global expertise in structured credit and demonstrates our ability to meet the rising market demand,” says Angie Long, Chief Investment Officer and Portfolio Manager at Palmer Square Capital. “Leveraging our proprietary benchmarks trusted by institutions worldwide, these new products offer efficient access to a unique and compelling asset class, affirming our commitment to creating value for institutional and professional investors.”

The firm writes that these ETFs will offer capital preservation by targeting cycle-resilient assets with zero historical defaults, including an actively managed multi-asset credit allocation product offering a single-manager solution to simplify portfolio construction and provide enhanced access to the best relative value opportunities across corporate and structured credit.

 The passive products will create investable access to Palmer Square’s deep understanding and research within the senior tranches of the CLO market, the firm says.

“Institutional appetite for our proprietary European CLO indices and debt products further underscores the demand for these innovative ETFs. Our ability to manage and develop these products entirely in-house ensures operational independence and best-in-class execution,” says Taylor Moore, Managing Director and Portfolio Manager.

2024 was the year of the ballot box, with the election in the UK bringing in its own new challenges. The IMF might have hailed Chancellor of the Exchequer Rachel Reeves’ ‘sustainable’ tax rises in the November budget, but companies facing increased National Insurance contributions for their staff were not so sanguine.

Institutional Asset Manager’s editor, Gill Wadsworth, quoted Vanessa Havard-Williams, Chair of the Transition Finance Market Review, calling for a new industrial revolution needed to deliver the energy transition, a one in two-hundred-year event, which, she said presents significant opportunities, socially, environmentally and economically. The UK has the infrastructure, market and ambition to succeed, leveraging its capability as a commercial, financial and civil society leader, she said.

Last year, Wadsworth noted that the worsening geopolitical fractures in the Middle East and the ongoing conflict in Ukraine continued to add challenges for a sector already contending with fears of recession, persistent high inflation and rising interest rates.

Those things are by no means resolved a year on. And her concern about the disclosure standards and reporting on ESG investment remains a further issue.

This year’s hunt for alpha has seen the institutional investor turn increasingly to alternatives that offer diversification and long-term returns. And here the service provider steps up again with third-party providers emerging as a constant source of support for asset managers and their investors as they navigate these challenges and opportunities, providing technological innovation, and legal, compliance, custody, administration and investment consulting solutions.

Many congratulations to all our winners in this year’s Institutional Asset Manager Service Provider Awards and thank you to all the organisations that took the time and effort to enter. Read our interviews with a chosen few in this year’s report.

Importantly, we look forward to bringing you more news and events from this fascinating industry in 2025.

Beverly Chandler, managing editor, Institutional Asset Manager

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