The 2020 Investment Management Industry Concussion

Article

The 2020 Investment Management Industry Concussion

Lessons learnt form COVID 19 crisis for the investment management industry

On the 13 January 2020, the World Health Organization announced the first identified case outside of China of the novel coronavirus. Four months later, the coronavirus has been baptized COVID-19 and the unprecedented crisis it has engendered has no pity for the World economy. The investment management industry is no exception. External market dynamics and inherent day-to-day operations lead the way for reduced profitability in the industry.

Executive Summary

Like many other industries, the investment management industry has been strongly hit by COVID-19 crisis, leaving industry’s players with several challenges to overcome. Challenges are coming from external forces:

  • High fund outflows 
  • Falling asset prices 
  • Increased volatility 
  • Investment targets scarcity 
  • Challenging regulatory supervision & reporting

Those forces have impacted investment firms differently depending on their internal models in terms of product mix, operational set up and digitalization level.
Today, the investment management industry must:

  • Maintain business continuity 
  • Renew with growth 
  • Comply with regulatory controls and reporting frameworks 
  • Maintain sound Valuation and Liquidity on investment products 
  • Make sure regulatory priorities are maintained 
  • Start planning post COVID-19 operating model change requirements
PDF - 1.8 MB

Performance magazine issue 32, May 2020

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.

PDF - 14.6mb
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