by Thomson Reuters.
Most Asset Managers today would acknowledge that the profession and the industry are at a crossroads. The challenges facing Asset Managers today and going forward are clearly complex, but can be tidily summed up: Costs are going up, and fees are under scrutiny.
We hosted a CIO roundtable, where Asset Managers shared their insights on turning today’s most pressing challenges into opportunities
Our panel included:
Finding Alpha with The Experts
Even the concept of alpha is viewed in multiple ways by asset managers, it’s a core belief of U-Wen Kok, Chief Investment Officer, RS Investments Developed Markets Group, that “planning alpha is actually possible”. Despite the way data now saturates the major securities markets, Kok feels that achieving a sustainable edge is a realistic long-term goal. “When we find active managers who do phenomenally well, we invest in these people, because we believe inefficiency still exists in the marketplace.”
En route to a sound, enduring advisor-client relationship – fueled by growth – how data is handled matters greatly. “A generation ago, an analyst did the job of a detective,” says Brian Reich, President and Managing Partner, Atrato Advisors. “Today, it’s more the job of a filter, separating signal from noise.”
Like any reward of true value, alpha is best viewed as a marathon rather than a sprint. A longer time horizon and patience to work through phases and functions are invaluable. “At the end of the day, time in the market will determine your success,” suggests Hank Smith, CO-Chief Investment Officer, Haverford Trust. “The longer you can be an investor, whether you’re one point ahead of whatever index or one point behind – if you’ve been invested for 30 years, you will be extremely satisfied with the amount of money you’ve made in equities.”
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