Going into 2022, asset manager product teams are focused on several initiatives, including building out new vehicles, incorporating environmental, social, and governance (ESG) principles into their firm’s investment processes, and developing and delivering asset allocation models. According to our research:

• Four out of five (81%) of asset managers polled by Cerulli view incorporating ESG/socially responsible investing (SRI) into the investment process as a high priority, while the other 19% view it as a moderate priority.
• Building out new vehicles is a high priority for 41% of asset managers, with another 44% indicating it is a moderate priority.
• Delivering asset allocation models is a high priority for 30% of asset managers with another 44% indicating it is a moderate priority.

There will be continued adoption and innovation of exchange-traded funds (ETFs). ETFs are viewed as a large opportunity by 86% of managers that currently use the vehicle, while 33% of managers that do not use the vehicle have plans to build ETF offerings over the next 12 months. ETFs are increasingly being viewed as a large opportunity, particularly as active strategies emerge and accelerate adoption at faster rates than passive ETF strategies. Diving deeper, transparent ETF structures appear to be the early winner as managers consider whether to use semi-transparent structures as the best avenues to win assets.

Our report, U.S. Product Development 2021: Aligning Product Development and Client Objectives, highlights areas for opportunity and growth for product development teams at asset manager firms. Learn how and where to invest your development efforts with our detailed analysis.