Fund industry optimistic about 2021
In our survey in December 2020, the fund industry in Germany looked back on a good year due to the rapid recovery of the stock markets after the turbulences in March - and was equally optimistic about 2021. Asked about their business prospects in 2021, 30 percent of the fund companies still assess their situation as unchanged good, 53 percent assume that their earnings situation will improve.
The industry benefits most from the demand for sustainable funds
According to the industry, very strong or large business impulses for 2021 will come from the demand for sustainable funds (73 percent). Impetus is also expected from the search for investment products (70 percent) that yield above-average returns. Alternative investment products (48 percent) such as private equity, infrastructure or private debt were also named as strong growth drivers.
Sustainability has a great impact on portfolio management
The fund industry expects the topic of sustainability to have a strong impact on portfolio management (72 percent). Respondents also expect Big Data (48 percent) and Artificial Intelligence (41 percent) to have a major impact.
Fund managers prefer exclusion criteria as a sustainability filter
Fund companies pursue different sustainability strategies in portfolio management (48 percent), depending on the fund. Exclusion criteria dominate (53 percent), followed by active management (43 percent) and the best-in-class approach (38 percent).
Fund industry uses different ESG data providers
When evaluating sustainable investments, fund companies use various ESG data providers. When asked which ESG data provider they used, 59 percent of respondents named MSCI ESG, followed by ISS (33 percent) and Morningstar-Sustainalytics (26 percent).
Fund industry is committed to climate neutrality
The EU's Green Deal aims for climate neutrality by 2050. 91 percent of all respondents also consider it important that fund companies should strive for climate neutrality for their own credibility.
Industry wants to build up staff in the areas of IT and sustainability
44 percent of the companies stated that they wanted to hire more staff, in particular in the areas of IT (40 percent), sales (40 percent) and sustainability (39 percent).
Sector continues to invest large amounts in IT
The sector will increase investments in IT infrastructure (69 percent) and enhance its focus on the digital transformation of processes (75 percent), modernising IT (47 percent) and cloud solutions (39 percent).