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Irish 2021 Outlook for Investment Management

A drive towards digital

Brian Forrester, Partner and Investment Management Leader, Deloitte, looks at how investment management firms must evolve to survive in a world of increased cost pressures and changing customer habits.

Even if we remove COVID-19 from the equation, the investment management
market was always ripe for change. In many cases, the crisis triggered by the pandemic accelerated trends that were already emerging. Chief among these is cost pressure: increased competition was driving down the management fees that investment managers charge. As assets under management fell at the height of the crisis, the reduction was very significant and, in many cases, has not recovered. We have also seen a significant move from active management to passive management, where the fees are not as high.

As consumers, we expect our interactions to be on a par with what we see on our smartphones and tablets. COVID-19 has only increased those expectations by speeding up the embrace of digital technology.

Brian Forrester, Partner and Investment Management Leader, Deloitte

2021 will also be the year that we stop talking about what sort of Brexit we might get, and we get on with implementing the agreement that was reached, however as regards financial services there remain a number of areas of uncertainty. The Irish market has seen a significant influx of asset management firms setting up a presence in Ireland to ensure continuity of access to the EU.

For information on the Global 2021 Investment Management Outlook see here.

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