From an early age, kids are taught to cooperate, to share toys, to take turns, and to celebrate their differences by converging into a circle each morning.

However, “convergence” between different quarters of the asset management industry hasn’t always come as naturally.  Now a report released this week by KPMG and UK-based consultancy CREATE says that although convergence is a new subject, it is already a key part of the curriculum.

Regular readers may remember the last report from this prolific partnership titled “Hedge funds: a catalyst reshaping global investment” (see related posting).  Well, apparently the “catalyst” is catalyzing nicely.  The newest edition, “Convergence and divergence: New forces shaping the investment universe” shows that hedge funds have stirred the asset management pot.  The report basically makes the case that the asset management industry is re-inventing itself through a process of creative destruction.  Here are a few of the report’s 12 key themes:

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