Asset Management Trends and Outlook for 2024
The asset management landscape continues down a path of transformation and recovery into the second half of 2024.
Stabilizing interest rates, equity rallies, and moderating inflation are met warmly from investors— yet a twinge of uncertainty remains with the upcoming U.S. presidential election and pending decisions from the Federal Reserve on the movement of interest rates.
The proliferation of artificial intelligence (AI) and generative AI (genAI) continues to dominate as an impactful trend in the asset management space. From surfacing opportunities and conducting due diligence, to streamlining workflows and portfolio management, AI is now a key tool for most asset managers. Those who have been slow or resistant to adopting these technologies have fallen behind the competitive curve.
These factors, among others, have laid the foundation for a year marked with cautious optimism, growth, and even more transformation. Asset managers that will find success in raising alpha amidst these evolving and sometimes challenging conditions are those that can pivot strategically, hone thought leadership, and implement adaptive protocol and programs to align with changing market trends—with the end goal of attracting investor capital and bolstering performance for their stakeholders.
Below, we evaluate some of the key trends shaping the asset management industry into the second half of 2024 and beyond.
Key Trends At A Glance
- Projected interest rate cuts and updated growth projections
- Strong recovery on the private equity front
- The era of digital transformation and investment in AI infrastructure
- Equity market rallies amid ongoing fluctuations
- Ongoing active vs passive management battle
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