The Great Reset: North American Asset Management in 2022
An “all-weather” agenda can help asset management firms thrive in a tumultuous and uncertain market environment.
Geopolitical shocks, surging commodity prices, and rising interest rates have inverted the patterns of sectoral performance (for example, energy versus technology) that drove sustainability-related returns in prior years.
In addition, rapid growth of sustainable funds has attracted both political attention and regulatory scrutiny, with several highly visible enforcement actions against alleged “greenwashing” taking place on both sides of the Atlantic and a regulatory push toward more transparent disclosures. The emergence of clearer standards and higher-quality data will ultimately be helpful for the long-term growth prospects of sustainable investing, but near-term uncertainty around rules will likely lead to a pause, at least in the regulated fund segment.