Asset Management Industry Crash Over Its Transformation Priority – 05/18/2022 at 10:30 AM


– Wealth management must revise its model from top to bottom by 2030, from its organization to its product distribution and its talent recruitment culture. This observation was made by Harmin Hologan, head of asset and asset management business in Europe, the Middle East, India and Africa, who conducted a fundraiser at the suggestion of a round table of “general managers”. Monaco on Wednesday.

The audience, made up of professionals in the asset management sector, as part of this panel, surveyed three situations that were expected to occur by 2030. “Transparency for all assets and the impact every investor has on the world” is, according to them, “long-term value creation and impact as a basis for managers’ remuneration and expenses” and “enhanced portfolio managers with artificial intelligence and quantum.”

For Brigitte Dourell, managing director of MFEX, Euroclaire’s fund distribution platform, technology is a key element in the evolution of asset management now and beyond 2030. Use of artificial intelligence for data management. We welcome what technology can do to support the industry, ”he said. Technology will play a role in future funding. The direct-to-consumer model (direct sales to the end customer) will probably gain ground but will be a model among others, says Brigitte Durel, adding that the industry must “realize the ESG paradigm”.

Asa Nouri, Europe managing director of US management firm Global Investors Europe and head of European distribution since 2021, believes that AI and robotics will play a major role in asset management by 2030. Robots and algorithms have not yet been able to detect specific market phenomena, such as the Panji pyramid-type Madoff or Archegos forgery, he noted. Norsa Norrie added that she spent her first year at PGI focusing her efforts on two other key areas of industry transformation: future growth and corporate culture that embraces issues of diversity and inclusion or still employee welfare.

ETFs on personal assets “not for tomorrow”

Transparency is another driving force behind the current and future transformation of asset management. And in this regard, Mario Giannini, director of Europe, Middle East and Africa at Hamilton Lane, an alternative management company, believes that private markets are far more developed than public markets. “In the coming years, the level of transparency in private companies will be much higher than that of listed companies,” he bet. He also sees private markets outperforming public markets thanks to their compensation structures. “We pay only if we create value and provide returns to the private market. That’s why we still attract a lot of investors, “he recalled.

If in terms of products, more and more directors are leaning towards personal and passive strategies in the hope of attracting investors, Mario Giannini is confident about the fact that the fusion of these two universes is not for now. “It’s not tomorrow that passive strategies will be able to replicate private market indicators. The key to passive strategies is to buy underlying resources. However, a private market index will be somewhat like an index of artwork. You really can’t buy a Mona Lisa (Leonardo da Vinci’s famous painting, Editor’s note), ”he said.

Focus “blocked”

Furio Pietribiasi, Managing Director of Mediolanum Asset Management, highlights the challenges facing the asset management industry from a distribution perspective. “How their funds are distributed has become a relatively minor issue for asset managers in recent years, due to the fact that markets have grown,” he noted. But now that it has become a central issue for almost everyone, it is even more difficult to create standards. A

According to Furio Pietribiasi, the focus of the industry is “stuck” on the value of money, transparency and environmental, social and governance standards.

“I was asked if I would like to have Article 6 classified as a fund within the meaning of European Regulation Sustainable Finance Disclosure Regulation (SFDR). The answer is of course yes because it makes no sense to place only Article 8 funds (which promote environmental and / or social characteristics, editor’s notes) and Article 9 (which promotes a clear purpose of sustainable investment, editor’s notes) on a large platform. Like us. Article 6 funds (which do not promote any sustainable features, editor note) offer good returns with what is currently happening in the market, ”notes the managing director of Mediolanum AM.

According to him, managers should first keep in mind a clear vision about the needs of their clients. Those who ask client managers to help finance their future retirement or their children’s education at the university, he concluded.

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