What are the biggest challenges facing asset management industry in 2023? (2024)

What are the biggest challenges facing asset management industry in 2023?

State of the Asset Management Industry 2023 Research Report

Firms are facing increased pressure to leverage digital tools for alpha generation. At the same time, they must attract and retain employees skilled at both the analytic and human-facing components of investment.

What are the issues that the asset management industry are facing?

What is the state of the asset management industry 2023?

State of the Asset Management Industry 2023 Research Report

Firms are facing increased pressure to leverage digital tools for alpha generation. At the same time, they must attract and retain employees skilled at both the analytic and human-facing components of investment.

What are the asset servicer trends in 2023?

Asset servicers are evolving

Our analysis uncovered five key trends impacting the asset servicing industry: data and digitalization, innovation, operating models, alternative investments, and sustainability and ESG.

What is happening in the asset management industry?

From a strategy standpoint, the survey found that asset managers are looking to invest in emerging technologies and are exploring the use of GenAI, though they are taking a measured approach for now. Employees at most firms are back in the office or embracing a hybrid model.

What is the biggest challenge in asset management?

One of the biggest challenges in asset management is tracking and managing assets effectively. This involves keeping track of the location, condition, and maintenance history of each asset, as well as ensuring that they are being used properly and efficiently.

Why are asset managers struggling?

High inflation and expectations of a recession have pushed down asset valuations. That, coupled with a clear shift of funds into cash and deposit accounts, suggests that industry AUM is shrinking. For many managers, that means management fees are under pressure.

What is the asset management industry trend in 2025?

Nearly all respondents (95%) believe that an asset manager's technology, data and digital capabilities will be differentiators in 2025. On the other hand, many asset managers are still in early stages—exploration and prototyping—with many emerging technologies, including AI.

How is asset management changing?

Asset managers will be more responsive to client needs on the digital level. The personal relationship with an advisor will erode and investors will take charge. Firms will be mostly cloud-based and AI-operated. Corporate responsibility will become a global priority.

Is the asset management industry growing?

Asset Management Market to Reach $8.3 Trillion, Globally, by 2032 at 36.5% CAGR: Allied Market Research. The global asset management market is driven by rise in need for optimum utilization of assets and rising adoption of cloud-based IT asset management solution.

What are the three areas of asset management?

While the definition of asset management may differ from one organization to another, they can be vastly classified into three types: physical, financial, and contractual.

What challenges are being within the asset and wealth management industry?

One of the key challenges is investment diversification. Wealthy individuals often have complex portfolios with various assets and investments. Managing and diversifying these investments effectively is crucial to mitigate risks and maximize returns. Another challenge is tax optimization.

How stressful is asset management?

On The Job, Lifestyle and Culture

Lower Stress Levels and Shorter Hours – most AM professionals work 50 to 60 hours per week, compared with 60 to 70 per week in hedge funds. Also, stress levels tend to be lower because you're not paid directly based on performance.

Who is the largest asset manager in the US?

What is the largest asset management company in the US?

What is the biggest asset management in the world?

BlackRock remains the world's largest asset manager overall.

What is the biggest management challenge you face today?

What should be in an asset management strategy?

An asset management strategy is a document that outlines where your current asset management efforts stand, assesses changes that need to be made within the next 3–5 years, and outlines the high-level actions you need to take to get there.

What is bad asset management?

The risks of a poor IT asset management program include: A lack of data to balance costs and determine an asset's return on investment (ROI). Gaps in cybersecurity that lead to non-compliance and breaches. Lack of operational asset visibility needed to make accurate business decisions.

How can asset management be improved?

Is asset management harder than investment banking?

Investment banking typically requires greater sales skills while asset management requires greater quantitative and analytical skills. That said, the most successful professionals in either career have a good mix of both traits.

Why is asset management a critical?

Asset management matters because it enables businesses to optimize the use and performance of their assets, leading to cost savings, improved operational efficiency, and enhanced decision-making.

What is the outlook for asset management M&A?

Looking ahead, we expect M&A to rebound as the macroeconomic environment starts to stabilize (albeit at likely higher interest rates) and as sellers recalibrate their expectations and buyers gain more confidence. We believe that consolidation pressures will intensify further.

What are some of the challenges currently faced by the asset management industry how can they be overcome?

Is asset management a good industry?

The asset management industry is typically known for offering competitive compensation packages combined with a good work-life balance. Finding a position may be challenging as there are fewer jobs than in areas such as investment banking.