Exploring the Future of Asset Management: Insights from the 2024 Asset Manager Survey
Over the past year, artificial intelligence (AI) has emerged as a significant topic of discussion among asset managers, according to the annual Index Industry Association (IIA) member survey. Following AI, sustainable investing, thematic investing, and customized investment have also captured the attention of survey respondents.
The survey results highlight a period of transition for the asset management industry in Europe and America. With increasing complexity, there is a growing need for new partnerships, specialized information sources, enhanced skills, and stronger ecosystems and alliances.
Background
For the past four years, the IIA has conducted a survey in collaboration with member firms and supported by Opinium Research. Each year, insights are gathered from 300 chief investment officers, portfolio managers, and chief financial officers across a diverse range of investment providers in the United States and Europe. The goal of the survey is to assess how asset managers perceive progress against current challenges, opportunities, and the key factors influencing the industry’s long-term evolution.
Initially focused on environmental, social, and governance (ESG) and sustainable-related indexes, the survey has since expanded to encompass a broader range of topics based on feedback from IIA members. The 2024 survey reveals deeper challenges, opportunities, hopes, and concerns facing the industry.
Key Insights
When asked about the factors that will have the greatest impact on investment performance in the next 12 months, asset managers expressed a heightened focus on macroeconomic issues such as interest rates, inflation, and potential economic slowdowns. Interest rates and inflation were deemed particularly critical, with 81% of US respondents highlighting these as top priorities.
AI emerged as a prominent issue for many managers, overshadowing sustainable investing. Themes like thematic investment and customized products followed AI, with only a small percentage of managers discussing topics such as tokenization and blockchain.
Exploring AI and ESG
Expanding the survey’s scope allowed for a deeper exploration of AI and its significance for asset managers. While ESG and sustainable investing remain integral, the survey suggests a shift towards a more realistic long-term growth curve. Environmental factors continue to dominate the sustainability landscape among investors.
Opportunities and Challenges
Private markets present both opportunities and challenges for asset managers. Despite the appeal of private equity for investment diversification, integrating it into portfolios poses significant hurdles, including liquidity concerns and data gaps.
Index providers are poised to play a crucial role in addressing these challenges. The survey indicates a growing demand for partnerships with index providers, particularly in areas such as sustainable investing, direct indexing, thematic investing, and customized investment solutions.
For a detailed analysis of the survey findings, click here. We welcome your feedback and look forward to further exploration of these evolving trends in the asset management landscape.