Asset Management in 2021: Adapting to Survive - Insights from Chitra Baskar

Chitra Baskar, Chief Operating Officer and Global Head of Funds & Product at Intertrust Group, was featured in Institutional Asset Manager’s first annual Global Outlook report. Chitra shared her views on what is to come for the asset management industry in 2021 in a post-pandemic world – the overall message from the report was that the sector urgently needs to “adapt to survive”.

Weighing in on the expected rise in global assets under active management, given the market volatility caused by Covid-19, Chitra commented:

“As per some surveys, asset managers expect that Covid-19 market volatility will drive a significant interest in active management, with over half of hedge fund managers (52 per cent) surveyed believing that the impact of Covid-19, and the related market volatility, will increase investor interest in active management. 30 per cent of the surveyed investors were of the same view.

“Private capital strategies always have preferred active management to achieve above average results. The current pandemic has led to a more distressed situation, requiring an even better management of its investments. Therefore, private equity and private debt will also see a rise in global assets under active management.”

Commenting on the expected continued pressure on fees, Chitra added:

The pressure on fees will continue, with constant efforts being put towards developing new fee models and alternative fee structures to provide some relief to investment managers.”

Read Institutional Asset Manager’s full Global Outlook Report here.