Investment Manager Outlook for 2021

Investment managers have had a tumultuous year in 2020, with crypto portfolios booking losses in three of the past four quarters, according to recent financial statements. As 2021 comes into view, experts are discussing new pipelines of opportunity for diverse Investment managers to break into areas where little to no diversity has historically existed.

Many experts have already sounded the alarm on the U.S. economy, but BlackRock — the world's largest Investment manager — has also weighed in, warning investors that the global economy is heading into a "volatile winter". UK Investment manager Terry Smith has blamed his £22.5bn fund's underperformance on the end of “easy money” and warned that central banks could run out of the ammunition needed to stimulate growth.

Hamilton Lane (NASDAQ:HLNE) — an Investment-management firm with $824 billion in assets under management and supervision — has opened the first of two new offices in the US this month, as the company looks to broaden its reach and tap into new opportunities for growth. Jay Hatfield of Infrastructure Capital Advisors believes stocks and bonds could rally 10% this year, citing his optimism on the situation.

The Financial Times has released a special year-end edition of FT Asset Management, spotlighting the fractured markets across the globe. Jeremy Gleeson of AXA Investment Managers told CNBC Pro Talks he still believes in the tech sector, despite the bad year it has had. He cited the importance of innovation and the potential for new technologies to drive the global economy.

Global asset managers are facing a long-delayed reckoning in 2023 as falling assets force them to cut costs and make tough decisions about how to handle their portfolios. This reckoning could mean that Investment managers must become more creative in their strategies, as well as more open to collaboration and new ideas.

As 2021 brings with it new challenges and opportunities, many Investment managers are looking forward to a more optimistic future. By leveraging the latest technologies and exploring collaboration with other firms, they can get ahead of the game and be ready to capitalize on new opportunities.