IA lays out vision for the future of the investment management industry

26 June 2019

The Investment Association (IA) has revealed its plans for a new fund structure specifically designed to invest in illiquid asset classes – part of three areas of development for the investment management industry over the next few years.

The Investment Association (IA) has outlined its vision for the future success of the investment management industry, in the UK and internationally. The industry is committed to meeting the changing demands of savers as they shoulder more of the burden of preparing for retirement, while providing the long-term investment that powers company growth and helps to finance new infrastructure.

The ‘2025 Vision’ report, launched at the IA’s flagship annual Policy Conference, outlines three key areas of development:

• A more value-focused industry in which sustainability and stewardship are at the forefront, particularly in the context of the challenge of global climate change. Greater clarity of approach in the area of sustainable investment will be a critical foundation. More consistent definitions, labelling and disclosure will help customers navigate this new landscape with confidence.
• A dynamic and responsive UK investment fund regime, better designed to meet the needs of both UK and international customers. This includes the IA’s proposals to create a Long-Term Asset Fund, a new fund structure which will enable investment in a wider range of assets, thereby unlocking new long-term investment opportunities for savers and providing companies and infrastructure projects with much-needed funding.
• The greater adoption of technology to drive innovation, improve operational efficiency, lower costs to customers and protect against increasingly complex and borderless cyber threats. Through the IA’s FinTech innovation hub, Velocity, and by working with regulatory initiatives, the investment management industry is collaborating with FinTechs to find new cutting-edge solutions.

Chris Cummings, Chief Executive of the Investment Association, said:

“The investment management industry is at an inflection point. The needs of our customers are changing rapidly, societal expectations are rising and technological advances will be transformative.  The IA is today setting out a series of concrete actions, building on existing initiatives that will help to ensure we can deliver in the UK and globally. 

“With three-quarters of UK households using the services of an investment manager, our vision for the future is focused on our customers, ensuring they can get sustainable, long-term returns from their investments. In getting this right, we will also make sure that funding flows effectively through the economy, helping companies grow and public infrastructure to be financed, meeting the needs of future generations.”

Press release

2025 Vision report

© Investment Association