2021 investment management outlook


2021 investment management outlook

Pressure catalyzes change

The COVID-19 pandemic was the story of 2020, but how firms recover and thrive in a post-COVID-19 world is expected to be the story of 2021. Before the world turned upside down, the investment management industry was experiencing two important forces: the longest-running bull market in history and shrinking margins at all but the most successful profitable growth investment management firms. As we look at the Assets Under Management (AUM) in the investment management industry and their long-term growth rates, the year-end 2019 figures are still instructive for understanding the allocations and historical returns.

Executive Summary

The market correction from February to March ended the bull market run, while operations were simultaneously thrown into turmoil by stay-at-home orders in the face of growing case counts of COVID-19. The market correction was short-lived, but the subsequent recovery activities undertaken by many firms continue today. In this industry outlook, we will explore the current status of investment management firms and their plans for achieving success in 2021 and beyond. This outlook is fueled by a proprietary survey of investment management firms across the globe and by examples of bold action taken by investment management firms (see survey methodology). Talent, financial management, and digital enablement of operations are three organizing areas that investment management firms appear to be prioritizing to emerge into the post-COVID-19 environment stronger than they were at the start of 2020. Over the next 18 months, the future of investment management firms could depend on how they execute these priorities.

PDF - 652kb

Performance magazine issue 34, January 2021

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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