The COVID-19 crisis hit at a time when the markets were experiencing the longest bull run in history, and margins were shrinking at all but the most successful investment management firms. The market correction from February to March ended the bull market run, while operations were simultaneously thrown into turmoil by stay-at-home orders.

Globally, private capital showed very favourable performance, as did AUM growth over the past 10 years. Prior to the crisis, passive investments provided strong returns and AUM growth and continued to take share of the overall investment management AUM in the US. Investor preferences through the pandemic have likely shifted, and this shift is not yet fully understood, nor has it fully played out. A key question is whether or not active managers provide value to investors through the volatility in ways that will drive investor behaviour.

Over the next 18 months, the future of investment management firms likely depends on how they execute their plans related to the return to the workplace, managing finances, and controlling operational change.

To discuss these themes and how your business looks to the future please contact us.

Previous editions

• Investment Management Outlook 2020
• Investment Management Outlook 2019
• Investment Management Outlook 2018

Published: December 2020