In February this year, EY published an article highlighting ways that asset managers can prepare for an uncertain future. The thoughts of the authors remain relevant today against a backdrop of persistent inflation and bearish markets.

With asset managers facing acute financial pressure after the disruptions of 2022, increasingly demanding and complex investor expectations, and the need for major cost reductions, 6 key areas were proposed for action. These include reorientating to be increasingly client-centric, digitising distribution, reimagining investment propositions, maximising growth and transforming business models. The sixth area of focus, that of leveraging external opportunities, foregrounds the potential benefits to be reaped from tactical investments, such as those in the key areas of ESG, private equity and private debt. Looking forward, the demand for flexibility within tech-enabled ecosystems will become stronger. By growing their digital connections with partners, asset managers can become ‘future flexible’, an undeniable advantage considering the global economic uncertainties of this time.