1. Digital acceleration
It has been described as “digital or bust” - the greater sense of urgency for asset managers to digitise operations and client interactions, as they seek to become more resilient and agile.
There’s no doubt the ramifications could be huge for the industry, especially with the increased availability of game-changing technologies such as AI, blockchain and cloud technology, enabling asset managers to potentially transform how their businesses operates.
2. Even greater momentum behind ESG
As significant as it already is, ESG is widely expected to gain further momentum in 2021, as it becomes embedded across all aspects of asset managers’ operations, communications and potentially regulations.
The pandemic is only accelerating this trend. According to Deloitte, more than 50% of investment management respondents globally indicated that their company is reprioritising ESG policies, programmes, and products as a result of the pandemic.
3. Pressure for employee diversity
Diversity is a hot topic and much has been spoken about how much or, potentially how little progress has been made, in not just the asset management industry but the investment industry as a whole.
However, the issue is picking up steam as more data becomes available to external stakeholders. For example, Institutional investment data collected by eVestment will soon include diversity data not only about the composition of an investment management firm’s leadership, but also at the portfolio manager team level. In addition, Deloitte expects to see the number of investment management firms who publicise their high-level road maps for increasing diversity to grow this year.
With evidence building that links diversity to positive performance outcomes, there’s no doubting the importance of diversity as a key ingredient of success in the coming months and years.
4. Data disruption
If you work for an asset manager, it’s likely your data management practices are a common talking point internally. According to Accenture, 66% of asset managers say that data management is the area of their business most in need of disruption.
Why is this important in 2021?
As we all know data underpins much of asset management. An effective data strategy is essential to help managers to scale and innovate, while also meeting increased client expectations and growing regulatory pressures.
Increasing digitisation and Cloud computing provide new opportunities to create, gather and centralise data. 49% of those who responded to the Broadridge Next-Gen Technology survey plan to transform their business by improving their ability to gather and analyse data quickly.
5. Consolidation of service providers
Asset managers won’t navigate any of these big changes alone. Instead, they’ll look to trusted external service providers to help them manage data, bring about digital change, or face any other challenge, change or opportunity.
But, with cost pressures very much present, asset managers are unlikely to use as many niche outsourced service providers as they have in the past. Instead, they’ll opt for the more efficient option of selecting a few trusted business partners to help them to grow.
At Broadridge Fund Communication Solutions we work side by side with our clients to help them navigate any data, regulatory or digital challenges.
If you would like further information about any of our solutions and services, or you have any questions, please contact us on +44 207 4181 4556 or at FCS_Sales@broadridge.com.
Together, we are always ready for what’s next.