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Laxman Pai, Opalesque Asia: Global market volatility fundamentally impacted asset managers by shaking up core assumptions that have driven the industry's record growth said a study.
According to the new report by McKinsey & Co, after two years of record profitability, North American asset management firms have hit a "speed bump" in their near-term economic trajectory.
The North American asset management industry has fared very well over the last decade. By the end of 2021, revenues had reached a record $526 billion, performance was stellar across regions, and North America was leading the charge, with the highest growth in revenues and assets under management.
However, the industry has hit a speed bump in 2022 as a result of the market slowdown that has forced a reset of expectations.
In the report, "The Great Reset: North American asset management in 2022," the authors said the "great reset" of macro, market, and policy assumptions is forcing the industry to ask which elements of the slowdown are part of a "new normal."
"The industry's clients-institutional and retail alike-are under pressure as they cope with reopened funding gaps and anemic asset class return forecasts, and they are questioning previously reliable recipes for portfolio construction and long-term investing," it said.
According to the report, the Great Reset of 2022 has loosened some of the foundational assumptions behind several of...................... To view our full article Click here
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