In 2018, US citizens living in America held over $113tn in assets. For context, that is over five times as much as all the goods and services produced in the US economy in a single year. If that amount were divided evenly across the US population, it would result in over $343,000 for each person. For a family of three, that’s over a $1m in assets. Given this, it’s no surprise to learn that eight of the top ten investment management companies worldwide are based in America, with a total amount of assets worth $24.5tn.
With existing investment firms dominating the industry, new firms entering the market will need to find unique and innovative ways of operating if they are to succeed. According to a report from Deloitte, new investment management firms are “targeting millennials”, a segment estimated to account for “$15tn in the United States over the next 15 - 20 years.” The key to attracting these individuals is peer-to-peer interaction, low cost, transparency, and thematic investing, including social impact. UBS, an established management firm is also trying their hand at technology, partnering with Amazon to provide investment advice through their virtual voice activated assistant Alexa.
According to the Alternative Investment Management Association (AIMA) there are almost 4,000 Fund Managers in North America, totaling $2,748bn assets under management. As the investment management industry becomes increasingly digital, firms will emphasize delivering strong customer experience for their clients, using technology to improve process efficiency, and find the right talent to bring their firms forward. The National Association of Investment Companies highlights how diverse and differentiated talent will be key for creating competitive firms and diverse portfolios. This year Selby Jennings was named by HFM Global as the Best Hedge Fund Recruiter, emphasizing our commitment to helping our clients secure top investment management talent as well as helping to address challenges like diversity and inclusion in the investment management industry.
With so many different financial products and a growing need for people with in-depth knowledge of geographic regions, most industry analysts expect strong employment growth in investment management to continue midway into the next decade. According to the Bureau of Labor Statistics, employment in investment management is expected to grow 11% from 2016 to 2026. The future is bright, even more so if you happen to be tech-savvy.