This year’s Global Asset Management CEO Outlook report recognises that the environment for asset managers has become increasingly complex, with rapid technological advances creating both new opportunities and risks. Asset managers CEOs reflect this in views that combine optimism, confidence and apprehension as they look to the future.
This sense of confidence is driving growth expectations and accelerating the pace of market transformation, particularly in the realms of generative AI (Gen AI) and digitisation. CEOs are focusing more on these technologies, viewing them as critical enablers of future success rather than cost saving exercises.
At the same time, asset managers CEOs are acutely aware of future challenges, with access to talent and developing a balanced approach to the evolving ESG landscape identified as key focus areas. The most successful asset managers are those who recognise and address the interconnectedness of these opportunities and risks, adopting a more holistic approach to their strategies.
Key findings from our research
80%
Despite the current economic and geopolitical backdrop asset managers CEOs are confident in their company’s 80 percent growth prospect. With 21% thinking earnings will top 5 percent.
89%
Looking forward 89 percent of asset managers CEOs plan to increase headcount over the next 12 months. With 70 percent expecting to see five days a week return to office.
62%
ESG continues to be a key focus for asset managers CEOs, with 62 percent embedding ESG fully into their business. Less than half of CEO asset managers surveyed are confident they will achieve their net zero goals by 2030.
71%
Asset managers CEOs see Gen AI as a top investment priority. The top benefit is expected to be upskilling the workforce for future readiness (18 percent). Additionally, 14 percent of CEOs believe its implementation will enhance fraud detection and cyber-attack response. However, alarmingly, only 34 percent of CEOs feel well-prepared for a cyber-attack.
Asset managers CEOs are notably confident in both the industry’s outlook and their firms’ growth prospects, despite facing challenges such as heightened geopolitical risks, ongoing economic uncertainty, and the complexities of digital transformation. Around 75% of asset managers CEOs consider generative AI a top investment priority, with most viewing this as an opportunity to upskill their workforce for future readiness or to enhance existing processes, particularly in areas such as fraud detection, cyber-attack response, and data analytics.
Methodology
The KPMG 2024 Asset Management CEO Outlook, part of the 10th edition of the KPMG 2024 CEO Outlook, is compiled from the views of 125 asset management chief executive officers, which was conducted between 25 July and 29 August 2024, providing unique insight into the mindset, strategies, and planning tactics of CEOs.
All respondents have annual revenues over US$500M and a third of the total companies surveyed have more than US$10B in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 11 key industry sectors, including asset management. NOTE: some figures may not add up to 100 percent due to rounding.
In the asset management research, the two largest sub-sectors were private equity (or special situations, private credit, infrastructure or similar direct investment strategies) with 22 percent of respondents and traditional asset management (primarily equities and fixed income) with 18 percent. The best-represented countries based on organizational headquarters are the US, the UK, followed by Australia, Canada, China, France, India and Japan.
