The year 2020 was a tumultuous one for society, the global economy, and asset and wealth management (AWM). After years of steady growth, the industry’s asset base was whipsawed by rapid financial market movements and the volatility will likely be a feature for some time to come.
Even when vaccines and treatments help us stamp out COVID-19, we won’t be going back to the world as it was. At this moment of inflection, AWM leaders like you have an opportunity. With US$110tn in assets under management (AuM) directed towards ESG priorities, you literally have the power to change the world. On your own, and in partnership with key stakeholders, including governments and portfolio companies, you can make a difference across three of the most critical priorities facing the world today, and use that power to shape the future:
Funding the future
AWM firms can channel capital and target investment opportunities to lift economies out of recession and sustain superior fund returns.AWM firms can channel capital and target investment opportunities to lift economies out of recession and sustain superior fund returns.
Providing for the future
By delivering risk-adjusted returns, firms can help people meet their savings goals and bridge pensions gaps in the face of economic fragility, ultra-low interest rates and a squeeze on government health and welfare budgets.
Embracing ESG as the future
For some investors, financial return will remain the sole priority. However, a growing number of investors expect AWM organisations to make environmental, social and governance (ESG) issues integral to their investment strategies. This shift is already having a revolutionary impact on product design, fund allocation and performance objectives.
As an AWM leader, your central challenge is to be a meaningful part of the solution while also meeting your fiduciary obligation to optimise returns. Many investors will no longer accept a trade-off. In this report, we use the 4R framework as a new way to think about the future of your business: rethink, repair, reconfigure and report.
