AreportfromtheDeloitteDeloitte Center for Financial ServicesInsights2023 investmentmanagement outlookTheglobal investment management industrylookstodrivesuccessinavirtuouscycle AbouttheDeloitteCenterforFinancialServicesThe Deloitte Center for Financial Services, which supports the organization's U S Financial Servicespractice, provicles insight and research to asslst senlor-level decision makers withlin banks, capltalmarkets firrns, irwestment managers, insurance carriers, and real estate organizatio ns. The center isstaffed by a group of professionals with a wide array of in-depth industry experiences as well ascutting-edge research and analytical skills. Through o ur research, ro undtables, aind other forms ofengagement, we seek to be a trusted source for relevant, timely, and reliable insights. Read recentpublications and learm more about the center on Deloitte,com.ConnectTo learn more about the vision of the DCFS, its solutio ns, thought leadership, and events, please visitwww.deloitte.com/us/cfs.SubscribeTo sign up for mo re Information and personalize the content sent to you. Includingour latest research, articles, and webcasts, please visit https://mydeloitte.com.EngageFollow us on Twitter at: @DeloitteFin5vcs.Investment Management Servicesagementindustry,Deloitte'andcanabilitieswithalocalrketdWayolingbusineoperational,technological and regulatory issues surrounding theindustry today. Learn more. ContentsKey findings2turning for continued success3Performance and M&A activity update5The competition for assets continues5Mergers and acquisitions7Optimizing the talent modelManaging workplace changes9Connecting talent with the organization11Strengthening culture13Ccrmmunicating for alignment13Investing for advantage14Outlook for alpha, client experience, operational efficiency15Looking forward25Endnotes26 2023 investment management outlookKEY FINDINGSOur survey results indicatefor the second co nsecutive yearthat a virtuous cycle exists inoverall success.Since Investment management is talent-driven, most businesses are working to optimize thelrtalent models. Firms are updating their workplace policies to influence employee satisfaction.However, these upcates alone are not always enough, Progress toward establishing andco mmunicating a corpo rate purpose is correlated to improved efficiency. revenue opportunity. andreduced employee turnover.Firms co ntinue to invest in digital transfo rmation with new techno logies that irnprove the clientthese changes effectively with communication to foster co llaboration across departments toachieve transformative results.many levels.N 2023 investment management outlookInvestment management firmsneed to keep theirvirtuouscycle turning for continuedsuccessROGRESS IN INVESTMENT maeagementenvironment ("Methodology: About the Deloittefirms is driven by leadership. InvestmeatCenter for Financial Serviceg 2o23 investmebtmanagement leaders provide the initiatingmanagemeat outlook survey'). The survey findingsspark for sucoass and guide the organization toindicate that strong conections betwesnachiave their firm's vision. By investing in talent,leadership, cultare, and operating results aratools, and innovative technologies, leaders can belppersistent year-over-year. In the face of markettheir firms achieve competitive advantage andchallenges, changing client expoetations, and theoperational efficiency. Two of the importantadoption cf aewr technologies, investmentfin dings from this year's investment managementmabagement firms that keep their virtuous cyclesoutlook survey are the consistency cf opinionturning could be Izore likely to earnbetween crganizational fusctions cn the health cfcontinued sucoess.allocation of resources over the coming 12:8months. These findings represent a meaningfulir.provemsnt in coordination across departrm entsfrom regults reported in the 2o22 investmentmanagementoutlook.Of course, revenue and prcfit growth are notdistribated oqually am ong in.vestmentmatagemeat firms. Some firms responded betterthan others to the unprecedsnted disruptices ofthe last tro ysars. Investment m.anagars continueto be faced with tougb decisions on how to respondto internal pressures such as rethinking traditionalworkplace izodels without sacrificing wrorkplacecultars. They also faoe extermal presures such asincreasing socsetal demands for greater equity andinclusion, Through our proprietary survey, weaxamine actions that laders are implem enting togaide their firms in this highly competitiveen 2023 investment management outlookMETHODOLOGY:ABOUTTHEDELOITTECENTERFORFINANCIAL SERVICES2023 INVESTMENT MANAGEMENT OUTLOOK SURVEYThe Delo itte Center for Financlal Services conducted a survey among 300 senlor Investmentmanagement executives in finance, risk management, regulatory compliance, operations, talent,marketing, and technologySurvey respondents were asked to share their opinlo ns on how their organizatio ns have adlapted tothe varied impacts of the pandemic on their workfo