2020 investment management outlookCrossing boundaries for profitable growthA report from the Deloitte Center for Financial Services
About the Deloitte Center for Financial ServicesThe Deloitte Center for Financial Services, which supports the organization’s US Financial Services practice, provides insight and research to assist senior-level decision-makers within banks, capital markets firms, investment managers, insurance carriers, and real estate organizations. The center is staffed by a group of professionals with a wide array of in-depth industry experiences as well as cutting-edge research and analytical skills. Through our research, roundtables, and other forms of engagement, we seek to be a trusted source for relevant, timely, and reliable insights. Read recent publications and learn more about the center on Deloitte.com.ConnectTo learn more about the vision of the DCFS, its solutions, thought leadership, and events, please visit www.deloitte.com/us/cfs.Subscribe To receive email communications, please register at www.deloitte.com/us/cfs.EngageFollow us on Twitter at: @DeloitteFinSvcs.As global leaders in providing services to the investment management industry, Deloitte’s Investment Management practice provides global resources and capabilities with a local presence, resulting in a clear understanding of each client’s specific market and way of doing business. Learn more on Deloitte.com.
2020: Crossing boundaries 3Finding growth with markets and products 5Creating operational efficiencies 11Customer experience and engagement 172020: Thriving in new territory 21Endnotes 22Contents
2KEY MESSAGES• The pace of mergers and acquisitions (M&A) may pick up over the coming year as investment managers look beyond their core capabilities to achieve top-line growth and extend client service offerings.• To expand into emerging customer segments, leading firms will likely try to resonate culturally with their new customers, deliver through current or newly developed technology, and meet the changing investment expectations, such as ESG (environmental, social, and governance) principles, of these new segments.• Private equity (PE) firms have started adopting alternative data for sourcing deals and conducting due diligence, following hedge fund and long-only managers. • Adopting and using insights from alternative data sets for managing and transforming portfolio companies can be a game changer for PE firms.• In 2020, Deloitte expects leading investment management firms to cross the boundary from traditional cost-efficiency projects into a save-to-transform approach, increasing competitive advantage in the process.2020 investment management outlook
3THE CHANGES FACING many investment management firms are significant. Internally, long-standing operating models may need transformation to keep up with the competition, and digital-enabled customization is becoming a client expectation. Exter...
