There are quite a few challenges and opportunities waiting for asset and wealth managers to take care of in 2017. Yet, a couple of the big themes have already positioned themselves as the priorities for the investment sector in 2017.

They include the following:

The Passive vs Active Debate Still Alive and Kicking

When it comes to the passive versus active debate the investment consultants they are unanimous in their conclusion. This debate is still sharp and important. In 2024, it is going to be important more than ever. The previous year got us an impression that the money strongly favored the passive incomes. Now, we have every reason to believe that an imminent market turn could change this passive tide. It turns out that the expected support for a low-fee investment environment will have to depend on both regulatory arguments and industry, rather than only market forces and macro-economic components, as we used to think in 2023. Yet, for the asset and wealth management industry to get anywhere near the successful resolution of this debate, it is necessary stock pickers to find a solution for outperforming the index-trackers in 2024.

The Increased Use and Dependence on Technology

It is not a surprise nor a news that investment managers are immensely dependent on technology. After all, this is an overwhelming tendency present in all industries not only in the field of asset management. However, asset and wealth managers can expect that robotics, data analytics and big data are going to play an invaluable role in their work and performance in 2024. Furthermore, the growing demand for smart sourcing and outsourcing investment services is going to inevitably lead to the development of new useful operating investment models.

We can also expect that hedge funds are going to heavily exploit the latest technology developments to bring down fees and costs associated with their financial activities. For instance, they can use big data to enhance their front-office analytics or invest in technology to ensure efficiencies in both middle-office and back processes. The most positive consequences of the latest innovative developments associated with technology benefit start-ups and new launches. How? Well, the lowering of entry barriers for initial financial activities for investment newbies in return contributes to the overall market, including all funds and investors, regardless of their size.

To sum up, 2024 is going to be an interesting and a challenging year for asset and wealth managers who need to pay attention to the passive vs active debate, the increased use and dependence on technology, to be successful and effective.