2020 investment management outlook
Crossing boundaries for profitable growth
The industry backdrop for investment managers has become increasingly complex. The mix of investments has changed dramatically over the past 10 years—passive funds are now accounting for the largest portion of the total US fund assets and private equity has also outperformed and grown assets steadily. These shifts coincide with an interesting global economic backdrop as the US economy continues its record expansion, major countries in Europe may already be in recession, and China’s growth slowdown is likely to continue.
In 2020, we think the cumulative effect of fee pressures, shift to passive funds, and higher concentration of assets could motivate investment managers to leave their comfort zones and cross boundaries by making dramatically different business decisions. The 2020 investment management outlook focuses on the strategic plans that can help investment managers succeed by:
• Finding profitable growth
• Creating operational efficiencies
• Improving customer experience and engagement