While many surveys in the investing world focus on the thinking of advisors, fewer, perhaps, take a deeper look at what asset managers are thinking. Yet, for investors, it can be useful to see what asset managers believe in aggregate. Many RIAs and investors are familiar with the regular release of annual, quarterly, or half-year outlooks from all the major firms. Taking a look at a few key takeaways from the recent 2024 global asset manager survey from the Index Industry Association, then, may reveal some intriguing insights.
AI Interest Drives Asset Manager Survey Trends
Managers had quite a bit to tell survey operators about generative AI. Within their own businesses, respondents shared that they see investment management and sales and marketing as key areas impacted by AI.
At the same time, however, those same respondents remain largely unconvinced by AI in their industry. More than 50% of respondents shared that they believe AI to be more hype than reality. The majority of those who regularly use generative AI and those who don’t use it agreed with that statement.
ESG Falling Off?
While there is a divide between U.S. and European asset managers, ESG is losing steam among most. In previous surveys, this survey found managers reported applying ESG criteria to a smaller percentage of assets than in either of the last two years. Despite widespread predictions that younger investors would arrive and drive a significant push into ESG, expectations of the future share of portfolios focusing on ESG have dropped noticeably.
Asset Manager Survey Finds Crypto in Decline
Ironically, the very un-ESG world of crypto also saw doubt in the new survey. The global asset manager survey’s respondents shared that they expect their firm to decrease the proportion of funds allocated to crypto. While that does speak to a somewhat understandable switch to equities upside, it also points to crypto perhaps having yet to pass the eye test.
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