As we look toward the next decade, there’s a question many of us in the industry are grappling with: where will asset management be by 2030? The answer lies not only in the technology and tools we’re adopting but in how we’re fundamentally reshaping client relationships, operational models, and the way we think about value. In recent discussions at Calastone’s Connect Forum events in London and Singapore, our clients and partners gathered to consider these questions, weighing the impact of digitalisation, tokenisation, and artificial intelligence (AI) on the future of investment.
It’s clear that 2030 isn’t an endpoint but a turning point—one where we can make significant strides in realigning with the expectations of a digitally-native investor base. These shifts aren’t simply speculative; they’re already changing the foundations of how we do business, underscoring the urgency for transformation in asset management.
A New Relationship with Technology
Technology has always been a powerful driver of change, but as we get closer to 2030, it’s taking on a more critical role in how we operate, make decisions, and engage with clients. AI, for instance, is already looking likely to become central to retail investment advice, enabling asset managers to provide real-time, predictive insights at scale. Yet to make the most of AI’s potential, we must address the legacy inefficiencies that still prevent true real-time interaction and personalised engagement.
During my keynote session, I explored the industry’s ambition and path to 2030, and polled the audience to gauge sentiment on some of these key areas of change and growth. The responses revealed strong optimism across regions that generative AI could be a cornerstone for retail investment advice by 2030, with a particularly high level of enthusiasm in Singapore. But this goes beyond operational enhancements—it represents a shift toward an asset management industry that can proactively meet clients’ evolving needs with immediacy and precision, allowing asset managers to deliver tailored insights and actionable recommendations in real-time. By harnessing AI effectively, we can transition from reactive service models to proactive, value-driven client experiences that anticipate needs before they are expressed.
The Expanding Role of Alternative Assets and Tokenisation
Another transformative change expected by 2030 is the redefinition of the asset mix, particularly through the rise of alternative assets. According to our live poll, fund managers in Singapore expressed strong optimism for this shift, predicting that by 2030, digital assets and private markets will become integral components of diversified portfolios. In contrast, while the outlook in London remains positive, there is a greater focus on regulatory caution, reflecting a more measured approach to innovation.
As investors seek diversification in an increasingly uncertain market environment, alternative assets are becoming more attractive. Yet, despite their potential for higher returns and uncorrelated performance, access has traditionally been restricted to institutional investors due to high entry barriers and limited liquidity.
Tokenisation is set to change this dynamic. Discussions at the forums highlighted that the rise of innovative financial products, particularly tokenised assets, could fundamentally transform access to these alternatives. By enabling fractional ownership, tokenisation lowers entry barriers, allowing a wider pool of investors, including younger, digitally-native individuals, to participate. It also improves liquidity, making traditionally illiquid assets more accessible and tradable.
However, regional nuances are key to understanding the pace of this shift. In Singapore, participants demonstrated strong enthusiasm for tokenisation as a catalyst for rapid transformation, reflecting the market’s appetite for embracing cutting-edge technologies. On the other hand, London participants were more circumspect, with the asset servicing sector stressing the importance of balancing innovation with regulatory compliance to ensure investor protection. This difference in sentiment underscores the need for a tailored approach, where firms must align technological advancements with local regulatory landscapes.
Tokenisation is not merely about efficiency but about reshaping the asset management landscape to be more inclusive, flexible, and responsive. While mutual funds and ETFs currently dominate, tokenised funds could represent the next evolution in fund structures, offering greater accessibility, agility, and operational efficiency. Although this shift may not fully materialise by 2030, its potential to redefine the industry is undeniable.
Closer, More Direct Client Relationships
As technology and tokenisation unlock new opportunities for asset managers, they also underscore a deeper industry transformation: the shift toward building closer, more direct client relationships. The focus is no longer solely on operational efficiency or product innovation but on creating meaningful interactions that align with the evolving expectations of a digitally-native investor base. In this new landscape, clients are not just looking for returns but also for engagement, transparency, and alignment with their personal financial goals.
In Singapore, our forum revealed a strong belief that these relationships will become core to asset management by 2030, with managers and advisors working closely with clients to align investments with their personal goals and values. This marks a shift away from purely transactional engagements toward trusted partnerships, with asset managers acting as strategic allies in their clients’ financial journeys.
In London, while intermediaries remain a factor, the focus is increasingly on creating more meaningful connections with investors. With investors now seeking greater control and insight into their investments, a personalised approach to engagement isn’t just a possibility; it’s becoming a necessity. Calastone’s approach is to make this scalable by leveraging digital tools, ensuring that by 2030, our industry is equipped to deliver the depth of client engagement that today’s investors demand.
Looking to 2030 and Beyond
Calastone’s forum underscored that while many paths lead to 2030, there is a common vision: a digitally-empowered, client-centric, and operationally efficient asset management industry. The journey will require asset managers to bridge regional differences, with Singapore showing greater optimism for rapid tech adoption, while London emphasises measured transformation. By adopting emerging technologies thoughtfully and adapting to regional dynamics, the asset management industry can ensure its resilience and relevance in the face of evolving investor expectations.
As we stand on the brink of 2030, we envision an asset management landscape transformed by technology, where client experiences are seamless, personalised, and driven by real-time insights. Imagine a world where investors have direct, digital access to a broad range of asset classes, facilitated by tokenisation, and where AI provides proactive, customised advice that enhances decision-making. Asset managers will operate with unprecedented efficiency, having overcome legacy system constraints, and will build trusted partnerships that adapt to each client’s unique journey. The firms that succeed will be those that not only adopt new technologies but also reimagine their role—elevating the client experience, driving strategic innovation, and leading the industry into a new era of digital empowerment. By 2030, we won’t just be using technology; we will be harnessing its full potential to turn this vision into reality.
(First published Funds Europe November 2024: https://funds-europe.com/brian-godins-where-will-asset-management-be-in-2030/)
