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Asset Management and Servicing: Navigating Market Disruptions and Opportunities Post-Covid

How Has the Pandemic Impacted Asset Management?

The COVID-19 pandemic significantly disrupted the asset management sector, quickly rendering traditional investment strategies unviable as market volatility soared. Asset Managers had to promptly adjust their approach to ensure the sustainability of their portfolios. From a focus on liquidity management to rapidly adapting investment strategies to better weather market uncertainties, the sector experienced a swift transformation. The ability to navigate unforeseen hindrances became a key differential, while technological competence boosted resilience. Contrary to initial apprehensions, asset managers who rapidly embraced these changes generally maintained their overall performance.

What's the Role of Asset Servicing in the New Landscape?

Asset servicing played an instrumental role in navigating these disruptions, facilitating transactional efficiency and ensuring seamless operations amid gigantic shifts. Major adjustments included streamlining operations, enhancing transparency, and implementing advanced technological frameworks. In a socially distanced economy, digitisation became an imperative, speeding up the transition towards automation in businesses. Simultaneously, adjusting to regulatory changes and maintaining compliance amidst market turbulence posed a fresh set of challenges, heightening the role of asset servicing.

What are the Emerging Opportunities in the Post-Pandemic Economy?

The crisis precipitated shifts in asset management and servicing, revealing new opportunities. Investment resilience is now a cornerstone, with asset managers focusing beyond traditional risk-reward trade-offs. Sustainable investing emerged as a key trend, driven by mounting investor awareness of environmental, social, and governance (ESG) factors. Furthermore, advances in technology underpin a shift in investment strategies and operational efficiency. Artificial intelligence, blockchain, and data analytics are key areas to look into. The post-pandemic environment incentivises early adopters, with significant potential for those who effectively harness these transformations respectively.

Key Indicators

  1. Global Economic Condition Trends
  2. Asset Fund Flow Trends
  3. Active vs Passive Management Trends
  4. Regulatory and Compliance Changes
  5. Technology and Ai Implementation in Asset Management
  6. Operational Efficiency Benchmarks
  7. Impact of Remote Working on Productivity
  8. Changes in Investor Behaviour Post-Covid
  9. Performance Metrics Post-Covid
  10. Trends in Alternative Investments