The July 2024 report shows the asset management industry rebounded in 2023 as markets rose on easing recession fears and expectations of 2024 rate cuts, though challenges persist. Global AUM increased despite continued net outflows, while operating costs hit record highs due to wage inflation and rising tech and data expenses. Firms are outsourcing non-core functions and adopting front-to-back platforms to cut costs and modernize operations. M\&A focused on expanding alternative assets, advisory, distribution, and geographic reach. Persistent headwinds include elevated costs, high interest rates, geopolitical risks, and demand for low-cost products.a

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