As part of this series, we asked , managing director & conducting officer at Nordea Investment Funds, about key issues in the industry for 2024. Chhor told Delano:

“This new paradigm of rising interest rates [means] that all asset managers need to rethink their operating models and make sure that it’s fit for purpose and really focusing on the core services. Active managers are really pushed to justify the level of fees and to generate even greater returns than our low-cost counterparts.”

“I think what we see is that investors are very cautious to come back into investing in funds, considering there are other more profitable solutions out there. So definitely a challenge in here, which will force our industry to rethink also how it operates. Larger asset managers can leverage on their scale to lower the fees, but smaller asset managers with tight margins need to assess their operating model as a strategic priority to effectively manage cost.”

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