The Top 10 Asset Management Trends in 2022


Competitive market pressures are stronger than ever, and volatility is back with a bang, putting the onus on smaller and emerging asset managers to find new ways to adapt. As firms reassess operating models with urgency and look to differentiate their service against a backdrop of sustained pressure on fees and shifting investor product demand, what are the top 10 trends shaping the asset management industry in 2022?

1. Inflation comes knocking

Opinions differ on how long inflation is here to stay for, but as it continues to rise, asset managers need to find new ways to protect against the worst of it. Previously out of favour strategies, asset classes and geographies have already started to make a resurgence.

With inflation widely expected to increase further before the end of the year, many investors have indicated they expect to reduce exposure to traditional fixed income assets. But investors aren’t completely put off by fixed income, as structured credit becomes a more attractive proposition, despite challenges around liquidity and valuation.

2. Standardising ESG reporting and disclosures

Interest in ESG funds has increased exponentially in recent years and there has been no sign of that slowing down in 2022. But it is not just inflows that have been increasing. As policymakers turn their attention to ESG concerns, there has been increased pressure for asset managers to provide more data and consistent reporting around ESG investments. Alongside the ongoing rollout of SFDR regulation, EU taxonomy and MiFID II sustainability preferences have also been added to the growing stack of ESG regulations asset managers must adapt to.

3. The regulatory onslaught

Regulatory reporting burdens continue to mount in 2022. As UCITS funds prepare for the transition to PRIIPS KIDs for retail investors beginning in 2023, and the rollout of ESG regulation continues, it all follows hotly on the heels of European Securities and Markets Authority guidelines on liquidity stress testing, introduced in September 2020. Under the guidelines, fund managers must stress test the assets and liabilities of their funds, including stressing potential redemption requests to combat liquidity risk. These obligations are on top of existing extensive reporting requirements for UCITS, AIFMD, MiFID, DTCC reconciliation under EMIR, Solvency II, ANNEX IV, OPERA et al., meaning asset managers are being forced to spend more time on regulatory compliance than ever before.

4. Rethinking Data Strategies

As firms look to find operational efficiencies, asset managers are reflecting on their data strategies in order to break down internal data silos and improve the quality of data that is used for portfolio analysis, client and regulatory reporting.

Asset managers’ ability to comply with their regulatory reporting obligations is increasingly tied to their ability to consolidate and aggregate data across multiple systems. Many are finding that with the burden of integrating new ESG metrics into portfolio analysis and reporting, legacy systems are struggling with the volumes of data required.

Data is also the fuel behind comprehensive performance and risk reporting, and with the underperformance some managers face in current market conditions, providing it accurately and quickly is more important than ever. Being able to consolidate and aggregate data rapidly across systems can help managers identify the performance drivers and detractors within a portfolio, along with gaining a full understanding of exposures and risk.

5. Providing a digital reporting experience

As competition for capital continues to rise, an exceptional reporting experience can go a long way to creating loyal clients and attracting new mandates. Investors increasingly favour managers that can provide a digital reporting experience where they get a near real-time view of top-level performance and risk metrics, but also the ability to look granularly at the individual security level. For asset managers looking to differentiate their service offering, providing only static, periodic reports is simply no longer enough.

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. As is the ability to deliver a wide range of analytics, including portfolio sensitivities, scenarios, stress testing, risk contributions and liquidity, alongside performance contribution and attribution analysis. Strong risk governance frameworks providing daily automated monitoring of regulatory and fund risk profile limits, with alerts to notify managers of any breaches, are essential for maintaining fund integrity.

7. The importance of transparent reporting

Transparent reporting is a vital contributor to investor retention, especially when performance has been struggling. Alongside their investment teams, allocators have non-investment teams who value high-quality client service and will have a significant say in deciding whether to redeem from a manager. Investors will need reassurance that any underperformance is temporary, especially with strategies that are prone to volatility and require a full cycle to deliver. Feeling confident they are not being misled or that anything is being hidden is crucial. Transparent and easy to understand reporting go a long way to providing that confidence.

8. The squeeze on fees continues

As investors continue to show partiality to lower-cost passive investment funds, the pressure on fees continues for active managers. Even amid improved returns in recent years, the industry continues to drop its fees and see investors pressing for even more concessions. It has put the pressure on asset managers to protect their margins by finding operational efficiencies with technological platforms and differentiating their service with outstanding reporting.

9. Cybersecurity concerns

Data security concerns were once of the main objections for asset managers moving to cloud-based software. But as the risk of a cyber-attack remains more prominent than ever, asset managers’ data is far safer in the cloud than on an in-house server.

Cloud-based solutions employ security measures beyond the affordability of most growing asset managers, where resources are often in short supply. Sophisticated detection systems, and strong authentication and encryption techniques to protect user data are standard. The level of investment and specialist expertise vendors can devote to monitoring the infrastructure and addressing new threats as they emerge ensure ongoing security, while fail-safe business continuity protocols maximise system uptime.

10. The move to cloud solutions

In a period of volatile markets and intense competition asset managers need to be nimble. Cloud-based investment management software gives smaller and emerging asset managers the ability to automate burdensome data management and reporting workflows, whilst also providing a radically improved reporting experience for clients.

Automation also frees employees from low value, laborious tasks such as manual data aggregation and reporting, allowing them to focus on higher value portfolio management and business development initiatives.

Data and digital transformation have never been more important for asset managers. Not just to control overheads and find efficiencies, but to drive growth and attract new capital too.

Find out how Landytech’s software platform, Sesame, is empowering scaling asset managers.

New call-to-action


Related Content

Related content

8 Aug 2022 | Infographic

Top 5 Regulatory Reporting Challenges for Asset Managers in 2022
Asset managers have faced nothing short of a regulatory onslaught in recent years. With demands set to only increase, explore the top 5 challenges firms face when it comes to regulatory reporting.
Download now arrow-read-more

3 Aug 2022 | Blog

The Top 10 Asset Management Trends in 2022
In this blog, we look at the top 10 trends shaping the asset management industry in 2022 and their implications. 
Read blog arrow-read-more

28 Jul 2022 | Blog

Quarterly Regulatory Round-up: Q3 2022
In this regulatory round-up, we break down the key regulatory updates and their practical implications for EU and UK-based asset managers in the coming months.
Read blog arrow-read-more

27 Jul 2022 | Checklist

Client Reporting for Asset Managers

For emerging managers, exceptional reporting can go a long way to creating loyal clients and greater client retention. Identify where you could make efficiencies and upgrade your reporting with this checklist.

Download now arrow-read-more

4 Jul 2022 | Blog

The asset manager’s how-to guide to ESG reporting
Asset managers must demonstrate that their fund disclosures and reporting approach meets parameters which are strictly linked to ESG reporting criteria. But reporting is not an easy landscape to navigate when it comes to ESG.

Today, most asset managers have several options to demonstrate the transparency and accountability of their ESG funds. But how these are implemented for reporting depends on the ESG strategy in place, and the jurisdiction in which the asset manager is operating.
Read blog arrow-read-more

1 Jun 2022 | Blog

How Sesame Revolutionises Reporting for Asset Managers
As investor service expectations evolve in their pursuit of clearer insights, new risk metrics and visually compelling reports, asset managers need the on-demand flexibility to keep up.  Find out how Sesame revolutionising reporting for asset managers. 
Read blog arrow-read-more

31 May 2022 | Blog

The Ultimate Guide to Offshore Trust Jurisdictions
When deciding which jurisdiction is the most suitable for an offshore trust, there are several factors to consider. In this blog we explore the top locations to set up an offshore trust.
Read blog arrow-read-more

26 May 2022 | Blog

4 top trends driving the ESG reporting agenda in 2022
Inflows into ESG funds have increased exponentially in recent years, but what is shaping the ESG agenda for asset managers?
Read blog arrow-read-more

13 May 2022 | Blog

6 things you need to build investment reports that clients love

Investors now expect on-demand, granular reporting, and legacy processes are straining under the pressure.

Through conversations with asset and private wealth managers our Client Operations Director, Kathleen Henrick, has identified six key requirements for creating investment reports that clients love.

Read on to find out what they are

Read blog arrow-read-more

6 May 2022 | Blog

SFDR Article 6, 8 and 9 products explained. What do the classifications mean?
In this article we dissect what is meant by SFDR Articles 6,8 & 9 and the implications for asset managers.
Read blog arrow-read-more

4 May 2022 | Guide

10 things to avoid when choosing an investment reporting provider

Selecting a digital solution for data consolidation and investment reporting is a big decision, one many asset and private wealth managers cannot afford to get wrong. It can be hard to know where to start when assessing a provider, and there are many pitfalls.

Discover the 10 key things to avoid when choosing an investment reporting solution.

Download now arrow-read-more

19 Apr 2022 | Blog

Why investment reporting needs to change

Across the investment management spectrum, the need for a radically different approach to investment reporting has never been greater.  

In this shifting landscape, implementing a data-driven, agile approach to investment reporting can help asset and wealth managers get back ahead of the game. 

Read blog arrow-read-more

15 Apr 2022 | Webinar

Risk management: What do allocators expect?
Watch as our expert panel discuss the best practices in risk management and what asset managers need to ensure they can attract institutional capital, at a time of increased market volatility and increasing allocator expectations.
Watch now arrow-read-more

29 Mar 2022 | Blog

The best practices in investment risk management you need to follow in 2022

For risk management, the ability to demonstrate extensive expertise alongside a deep understanding of the investment side of the business is crucial. But what best practices do firms need to follow to achieve an institutional-level standard of risk management? 

Read blog arrow-read-more

23 Mar 2022 | Whitepaper

Risk management: What do allocators expect?

An in-depth guide to risk management featuring insights from asset management and due diligence professionals.


Download now arrow-read-more

10 Mar 2022 | Blog

Portfolio analytics: Why cloud solutions are the future
The need to manage large volumes of data and perform complex calculations at speed have left many firms’ legacy systems and outdated technology struggling to keep up.  It’s time to take to the cloud. 
Read blog arrow-read-more

1 Mar 2022 | Blog

5 reasons you need a wealth management API

As fast, sophisticated data management becomes business critical, what are the benefits data APIs can offer your organisation?

Read blog arrow-read-more

15 Feb 2022 | Blog

Cloud-based investment management software: 5 reasons you can’t afford anything else  

In a world of rising client, regulator and staff expectations, portfolio and risk management capabilities quickly become outdated. Cloud-based platforms offer the solution.

Read blog arrow-read-more

11 Jan 2022 | Blog

The cost of meeting allocators' risk management expectations for asset managers

Implementing a fit-for-purpose risk management and reporting function is expensive. But for asset managers, the cost of sub-standard risk capabilities is even higher.

Read blog arrow-read-more

16 Dec 2021 | Case Study

Landytech Helps Hedge Fund Achieve Substantial Cost Savings

After a recommendation from a market peer, a UK-based multi-strategy hedge fund approached Landytech for a managed solution that would provide expert risk management support, as establishing and maintaining this function inhouse would come at significant cost. Read the full case study here.

Read case study arrow-read-more

15 Dec 2021 | Blog

The 5 must-have capabilities for managing the risk function in-house

So you know you need a robust, institutional-grade risk management capability to attract investor allocations and meet clients’ ongoing demands. But what does a fit-for-purpose risk management and reporting function entail in practice?

Read blog arrow-read-more

7 Dec 2021 | Blog

4 things asset managers should look for in a risk management provider

Faced with demanding investor and regulatory expectations, asset managers are increasingly turning to third-party risk management providers.

Read blog arrow-read-more

24 Nov 2021 | Case Study

Equity Manager Transforms Risk Management and Institutional Client Reporting Process with Sesame

Skerryvore Asset Management needed a sophisticated risk management and data analysis platform to meet the exacting due diligence requirements of institutional investors and so help grow its business. Read the full case study here.

Read case study arrow-read-more

18 Nov 2021 | Whitepaper

The True Cost of Risk for Asset Managers

Comprehensive risk management capabilities are an integral and growing ingredient in asset manager success. Since the 2008 financial crisis, the value a strong risk management infrastructure and team bring has moved to the fore. Download our whitepaper examining the true cost of risk for asset managers.

Download now arrow-read-more