How Asset Managers Seek to Grow in 2024 and Beyond

Investment managers are prioritizing the quality and accuracy of their products to enhance the investor experience and grow their distribution in the next two years, according to a recent survey of global asset management firms sponsored by Northern Trust.

A marked shift in priorities to a client-centric approach from cost control has occurred, the survey showed, with 72% of respondents saying enhancing quality and accuracy is their top strategic priority in the next two years, up from 45% in 2022. Seventy percent said their chief priority is improving the investor experience, and 60% said it is expanding the product set. 

Only 46% of respondents identified controlling costs as their top strategic priority in the next two years. 

“Asset managers are focused on honing their distribution channels, and having access to high-quality, consistent data is crucial in driving those decisions,” Ryan Burns, head of global fund services, Americas, said in a statement. “It’s important that managers have a deep understanding of their clients’ needs so they can find them the right product at the right time, because there is no one-size-fits-all solution.”

For the survey, WBR Insights conducted telephone interviews in the first quarter with 300 CEOs, chief information officers, directors of operations and senior executives at asset management firms around the world with $500 billion or less in assets under management.

Strategic Shift

The survey found that 83% of respondents plan to change their product strategy in the next two years, with a focus on meeting diverse investor needs. This strategic shift emphasizes the need to cater to diverse investors who will require different products, someone who is near retirement, say, versus an investor just starting out.