Uncertainties around the pace and sustainability of economic recovery are at the forefront of industry concerns as it designs a strategy for growth and innovation after the Covid-19 pandemic.
Decision-makers are also challenged by the continuing pressure of regulatory adaptation, and the need to redesign technology stacks and communication interfaces to fulfil the digital needs of the funds industry both for current and future generations.
In this survey, Funds Europe, in partnership with CACEIS, examines where priorities lie for asset managers in crafting their product strategies and fund governance for a world after Covid-19. We examine the growing importance of ESG and climate change factors in shaping investment strategies and investor preferences. We also explore steps to promote diversity and inclusion in the funds industry. Among the survey’s key findings:
Economic outlook
• 52% of respondents said that uncertainties over the pace of economic recovery present the greatest risk to their business.
ESG and climate change
• 81% said that they are currently integrating ESG standards into their business practice or that they have already done so.
• 73% said that ESG standards will become, or have already become, a mandatory component of fund governance.
Priorities for pension funds
• 54% said low interest rates are the major challenge confronting pension fund boards.
• 64% said pension funds should direct more attention to alternative investments in their search for yield.
Digital transition and service outsourcing
• 85% said that data management and analytics are the area of digital transition where the funds industry most needs to focus investment.
• 67% said that cost pressures will be the primary driver for greater outsourcing.
A total of 172 funds professionals participated in the online survey, conducted during February 2021. See survey methodology below for more information.
Survey methodology
A total of 172 fund professionals participated in the survey, conducted online during February 2021.
Looking at the occupational breakdown of respondents, 30% indicated that they work in fund administration or asset servicing. A further 19% indicated that they work in fund manufacture.
In total, 17% of the respondents identified themselves as working in fund distribution, with platform services (8%) and market infrastructure (7%) the other key categories.
The balance of respondents (‘Other’) includes respondents working in legal services, software vendors, trade associations and private banks.
Most respondents are based in the major fund domiciles of Luxembourg (20%), France (17%), the UK (15%) and Ireland (10%).
Any commentary in this report relating to survey results, or wider analysis of the industry, is that of Funds Europe and does not necessarily reflect the views of CACEIS.
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