Megatrends in investment management

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ADAPT and acquire new skills.

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This is the mantra of Tony Tan, PhD, CFA, who heads the Global Society Advocacy Engagement and Standards & Advocacy Division, at the CFA Institute for the Asia-Pacific region, to all investment managers.

Tan, also a designated chartered financial analyst (CFA) with the nonprofit CFA Institute, a global association of investment professionals, says that aging demographics, particularly in the developed markets, is going to demand more health-care benefits while companies will face pressure for the succession planning of their retiring workforce.

He is suggesting, therefore, that the advancements in technology may be harnessed as a powerful and innovative tool in the investment arena, if these are fashioned to be adaptable to meet the needs of their clients. Technology must also be seen as a solution that can efficiently address the rising demands from the regulators or the government.

It was also Tan introduced the concept of “uberization,” a term derived from the company Uber, which refers to a phenomenon where the business environment changes toward a more efficient one. Like Uber and other tech-based companies, consumers and providers of service are matched directly to eliminate or at least reduce the inefficiencies in the market.

This relates to the industry and the profession as they may not be exempt from experiencing this kind of development. The role of “middlemen” may become obsolete at some point. To be resilient, firms must be able to innovate constantly in order to add value to their products or services.

But is there a formula to obtaining sustainable success?

Tan has this to say: “Always put the investors first and foremost, and always maintain a high standard of professionalism, competence, and ethical behavior.”

FERLYN CARGULLO

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