Re: Scrutiny on the Expense
Greg / Ivy, Thank you. Yes the Asset Management industry's focus has long been on exploring ways to optimize and differentiate their offering in the market. For many years this was achieved through heavy investment in the front office to help spearhead expansion and asset gathering activities. The tide is now turning, and with heightened investor scrutiny and additional regulatory “shots across the bow,” managers are beginning to rethink their back-office investment strategy. New regulations, the push for a more efficient global operating model and increased investor demand for more customized transparency reporting will drive this process over the next few years. For example, transparency around fund and manager expenses will be a key focus for investors and regulators in the months and years ahead. To properly address this, managers will need to invest in technology that can manage and fairly allocate charges across multiple share classes. I believe that we will see a push in the industry to further embrace technology as the markets look to buck the trend and head North!