EVENTS Oxygen for all at TSAM
IBS Journal grabbed a front-row seat at the Summit for Asset Management in London this month, to see how a rapidly changing world is affecting a famously steadfast industry
Senior Fintech Reporter Alex Hamilton
IBS Journal April 2018
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A
sset management, alongside its cousin wealth management, is often seen as the slow man of fintech – often behind when it comes to embracing the changes occurring in the world
today. That view was, perhaps unsurprisingly, taken to task this month at the Summit for Asset Management (TSAM) in London.
A few hundred delegates piled into the QE2 Centre in the heart of Westminster for two days of seminars, discussions and roundtables. There was certainly much excitement, with some attendees overheard in the registration queue extolling the virtues of on-site networking.
But first, there were a few large elephants present in the room, most notably the change in political landscape since TSAM 2017. Populism and its effect on the industry at large was a topic dove into with gusto by a panel of chief economists.
Cycles and changes
Megan Greene, of Manulife Asset Management, said that “all of us” can agree we’re in the late stage of a business cycle, but added that it could be one that lasts a long time, especially because of disruptions. A few things have shifted how we consume and invest, she added. We are experiencing an oversupply of a number of factors, including labour, debt and capital. Two thirds of what we consumer are services, as opposed to goods. Without wage growth, there won’t be growth in inflation, added Greene, suggesting we’re stuck in a low-growth, low-inflation economy.
Phillipe Waechter, of Natixis Asset Management, asked whether it was necessary to boost global growth when 2016 and 2017 showed steady improvement in almost all areas.
“We have already seen some imbalances and will probably see some inflation,” he added. Every country wants to create its own recipe for trade, which is a source of disruption that will be quicker than what is expected.
Larry Hatheway, from GAM, added that the atmosphere among asset managers is similar to that surrounding the 2008 crisis. While it might not be as much of a historical moment, he quickly clarified, repercussions will still be important for the buy-side. There should
be some concern that monetary policy, driven by populist politicians, is behind the curve. “People shouldn’t assume that this time will be different,” he said.
Equality means equality
Some 78% of asset management firms think their policies on gender equality are “good to very good”, yet only 26% believe the industry in general falls under the same category. In a fresh panel, Alison Jefferis, head of corporate affairs at Columbia Threadneedle Investments, wondered aloud how many women made up the 78% figure. Yet media exposure and public focus have helped drive an agenda of change, she added. Unfortunately, though, some companies are just not thinking of gender diversity as a business issue.
Peter de Norville, former director of global diversity and inclusion at the Employers Network for Equity & Inclusion, kicked things off by giving an outsider’s perspective. To him, asset management isn’t exactly leading the gender equality charge, but it’s “certainly not last” in the rankings. De Norville said that “nobody is doing this incredibly well” – it’s a long journey which most companies will never reach the end of. Within financial services, insurance lags behind the most, but a wider perception is that the industry is trying to make a difference.
Parity is the target
Jefferis, whose company makeup – in the investments division – is about 26% women, said that they had been focusing on it for years, posting gender data from as early as 2012. “Parity is the target,” she added. “Our aim is 50% representation in all measures, and we’re a long way from that.”
Chairing the discussion, Siobhan Clarke, COO of investment operations at M&G Investments, joked that if she could have a penny for every time a female C-level executive said she’d not faced any discrimination, she’d “not have all that much money at all”.
De Norville concurred: “You need to look at the difference between diversity as it looks and diversity as it is. If everybody comes from the same background, irrespective of the colour of their skin or their gender, they’ll think the same things and you’ll end up going nowhere.”
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