Asset Management Industry Trends to Look out for in 2019

Businessmann schreibt ETF auf Tafel Konzept.
22 Jan 2019
Nothing stands still in the world of asset management. We take a look at what could be the big trends in the asset management industry in 2019.

Did you know that investable assets will grow to $102 trillion by 2020?

Are you hoping to invest in something new this year but not sure what to choose? Not to worry! In this article, we’ll cover some of the asset management industry trends.

Want to learn more? Keep reading to find out.

Asset Management Industry

An advisor manages and develops assets in the most cost-efficient way. This includes taking into consideration risks. Have you already chosen someone to manage investments on your behalf?

Let’s look at some trends in asset management for this year.

Exchange-Traded Funds

There’s an increase in launching new ETF fund ranges into EMEA. The interest ranges from US asset managers and UK asset managers.

This could lead to many new entrants into the European ETF market. Fee compression’s continued for ETFs over the last year. This turned into the launch of the first zero-expense ratio funds.

Low fee ETFs could become the norm for core ETF products covering massive cap indexes.

The general direction for ETF fees in 2019’s downhill. This year will keep asset servicing providers alert. Its another busy and unpredictable year for clients.

Environmental, Social, and Governance Investment

Last year, folks discussed ESG (environmental, social and governance) investment. This year, that discussion may turn into engagement.

Sustainable investments evolved from negative exclusion to positive inclusion. Before, people avoided investing in businesses connected with issues like tobacco and gambling.

Now, there’s an increased interest in responsible investment opportunities. This will generate decent returns and improved social good.

This approach to sustainable investments needs more complex benchmarking, monitoring, and metrics. Developments in ESG standards, legislative proposals, and taxonomies have taken place.

Some critical elements for the ESG landscape aren’t in place but this year is the chance for it to go mainstream.

There are issues for sustainable investment. Yet the industry and governments seek to set up common frameworks and principles.

Private Markets

The popularity of private marks won’t lessen this year. Real estate and infrastructure allow capital to flow into private market investments. You have the potential for consistency at scale and alpha.

Pension funds are the largest group of limited partners. Endowments allocated to private markets allow sovereign wealth funds to increase.

Private debt’s a strong growth area. New loan funds are arriving at the market. Regulations driving bank disintermediation support the growth of private debt.

Low credit spreads in public markets made private debt attractive to those investors. They’re willing to exchange liquidity for expected returns without considerable risk.

Find a financial advisor that you trust and make a plan for this year. They’ll help you organize your finances and discuss upcoming investment strategies.

Contact Us Today

We hope you found this article on the asset management industry insightful. Sit down with your advisor and go over these trends in asset management.

Want to learn more? Contact us today. We would love to chat with you.

 

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