A long-term outlook for asset owners and managers
What do you think our industry will be like in 2025? One thing is certain; the environment that we are operating in today will not exist in 10 years’ time. Markets, our industry and the world will keep changing.
The Australian Institute of Superannuation Trustees (AIST), in conjunction with BNP Paribas Securities Services, undertook research to identify key longer-term issues we might all face. By asking where you think the industry will be in 2025 we sought to consider how to best shape our industry, overcome challenges and maximise opportunities for asset owners, managers and investors.
We identified several notable trends:
Demographic shifts will create investment opportunities.
- These will vary by region and country, and
- Entice more asset owners, managers and investors offshore.
A wider range of asset allocation approaches will be used to try to reduce volatility.
- This should lead to new asset classes being developed, and the
- Introduction of new performance measures and investment reporting.
A greater emphasis on risk-return analysis, including:
- Identifying how much risk is taken to generate returns, as well as
- Providing data in real time.
Ageing developed populations will seek incomes from their funds.
- Asset owners and managers will develop and offer retirees new forms of ‘income stream’ products.
Regulators will maintain strong oversight.
Technology will continue to revolutionise our industry and how it meets clients’ demands.
There will be continued restructuring of industry participants.
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As the first major foreign bank in Australia, BNP Paribas has seen a lot of change over the past 134 years – and know how to get the best from it. That’s just one reason why its tagline is “the bank for a changing world”.
We hope you find this study helpful.