Investment Management Opportunities in UAE in 2021

200 industry professionals have considered COVID-19 recovery initiatives in our investment management perspective for 2021. How might new education be used as a catalyst for the change of business?

Thrive to Grow

The worldwide narrative for 2020 was the COVID-19 pandemic, while the investment management industry’s narrative for 2021 is projected to be how businesses recover from the epidemic and prosper in a post–COVID-19 environment. 

COVID-19 had a broad range of effects on different industries, with Private investment management faring better than other parts of the economy. Investment management businesses’ revenues were largely unaffected, but their personnel, operations, and technology were. At the same time, market volatility and price movement at the industrial sector and asset class levels escalated considerably.

Before the world turned upside down, the investment management sector was being buffeted by two major forces: the longest bull market in history and diminishing margins at all but the most successful businesses. 

The market adjustment from February to March brought the bull market to an end, while operations were thrown into disarray by stay-at-home orders in the face of rising COVID-19 case counts. Although the market drop was brief, many companies’ following recovery efforts are still ongoing.

Sustainability in Offerings

An increasing number of government agencies are compelling financial participants to meet the standards for disclosure of environmental, environmental, social, and corporate governance. Future-oriented asset owners committed themselves to ambitious measures. 

Asset managers with ESG’s own aspirations to increase their investing processes can assist these customers by becoming ESG consultants and no longer merely producers of ESG products.

Climate and sustainability are rapidly becoming important factors: the most developed managers will form partnerships with major global temperature research organizations and refine their premium materials and service offerings to assist their clients in making more climate-aware investment and program evaluation decisions.

Diversity in Management

Companies will be tempted to imagine that the extra flexibility that remote work provides will reduce one of the classic obstacles that stopped more women taking up office employment, but this is not true.

With the workers returning to the workplace, people who are able to be there will be at an advantage as 

contrasted with others who aren’t “in” all the time as regards their professional growth. 

Companies will take active management action to redesign people and governance procedures to achieve enduring diversity in their headquarters and confront the old shibboleths that COVID-19 highlighted.

Digital Evaluation

In the previous decade, what investment management businesses do to please investors has remained mostly unchanged. Investment managers and financial institutions create expectations for how their portfolios will perform based on a variety of factors, including return, risk, diversification, and index correlation. 

They also reveal the fundamentals of the plan for delivering these benefits to investors and prospects. These factors remain consistent, but how investment management businesses accomplish outcomes operationally is evolving at a rapid pace, as is how customers are managed throughout the life cycle.

Digital banking and online financial services are considered as the best private banking services. According to this logic, investment management companies are using three of the six digital client communication and engagement methods described in figure 7, which is a quite high number given the retail focus of several of the actions. The 1% of responders who say their customer communication approach hasn’t changed also emphasizes this point.

Conclusion

Collaboration and the development of relationships on digital platforms are probably essential parts of a good process. The effect of the human factor will probably increase by the end of 2021 and function as an accelerator of digital procedures that have been used well in squeezing.