As investment options continue to diversify, there is a growing trend of individuals seeking professional management for their investments. Factors such as the rise of alternative investment strategies, increasing consideration of Environmental, Social, and Governance (ESG) criteria, and the adoption of cost-effective digital-focused strategy are expected to sustain the momentum in the industry.
That said, this article explores the fundamentals of three asset management companies, Ashford Inc. (AINC – Get Rating), SEI Investments Company (SEIC – Get Rating), and Westwood Holdings Group, Inc. (WHG – Get Rating), which might be worth adding to your portfolio amid the industry tailwinds.
According to Statista, the global Assets Under Management (AUM) in the wealth management market is projected to hit a whopping $130.60 trillion in 2024. The growth is expected to continue steadily, with a modest CAGR of 5.9% from 2024 to 2027, ultimately reaching a remarkable $155.10 trillion by 2027, underscoring the increasing demand for professional asset management services.
Furthermore, the asset management landscape is undergoing a significant transformation. The widespread integration of Artificial Intelligence (AI) and generative AI has become pivotal, influencing various aspects of asset management, including opportunity identification, due diligence, investment decision-making, and portfolio management.
In 2023, the global AI in asset management market held a value of $2.60 billion and is anticipated to achieve $11.90 billion by 2030, experiencing a robust CAGR of 24.4% within the forecast period from 2023 to 2030.
While AI is poised to increase operational efficiency within the industry, ESG investing strategies are expected to elevate ethical considerations. ESG considerations can aid in recognizing enduring risks linked to climate change and social issue, proving to not only be morally sound but also a financially lucrative investment option.
Overall, the asset management industry is navigating a transformative period driven by technological advancements, evolving investment trends, and the integration of ESG considerations.
With that being said, let’s dive deeper into the fundamentals of the featured Asset Management stocks, beginning with the…
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