Riding the Wave: Top 10 Trends Revolutionizing Asset Management in 2023

Here are the top 10 current trends in asset management software in 2023:

1. Inflation persists: The high inflation rate is significantly impacting the operating costs of asset managers. This is pushing the industry to re-evaluate processes, operating structures, and their technology cost of ownership in a bid to keep costs down.
2. ESG reporting and disclosures: The interest in ESG funds has increased exponentially in recent years and continues to rise in 2023. There is increased pressure for asset managers to provide more data and consistent reporting around ESG investments.
3. The regulatory onslaught: Regulatory reporting burdens continue to increase in 2023. Asset managers are spending more time on regulatory compliance than ever before.
4. Rethinking data strategies: Asset managers are reflecting on their data strategies to break down internal data silos and improve the quality of data used for portfolio analysis, client, and regulatory reporting.
5. Improving the reporting experience: As competition for capital continues to rise, an outstanding reporting experience can help in cementing brand credentials, creating loyal clients, and attracting new mandates.
6. A heightened focus on risk: In volatile markets, investor demands when it comes to risk management become deep and broad. Robust processes and high-quality risk reporting are paramount.
7. Providing transparent reporting: Transparent reporting is a vital contributor to investor retention, especially when performance has been struggling.
8. The squeeze on fees continues: The pressure on fees continues for active managers as investors continue to show partiality to lower-cost passive investment funds.
9. Factors are back: Persistent inflation and geopolitical tension have altered outlooks and fueled deglobalization. Investors are now turning back to factors to better understand portfolio characteristics and market opportunities.
10. Technology adoption: Cloud-based investment management software gives smaller and emerging asset managers the ability to automate burdensome risk management and reporting workflows, while also providing a radically improved reporting experience for clients​¹​.