Megatrends in the investment management profession

ADAPT and acquire new skills. This is the message of Dr. Tony Tan, CFA, head of Global Society Advocacy Engagement, to all investment managers.

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 work force.

Mr. Tan suggests that the advancements in technology can be 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 also be seen as a solution that can efficiently address the rising demands from the regulators or the government.

Mr. Tan had also introduced the concept of “Uberization,” a term derived from the company Uber, which refers to a phenomena whereby the business environment changes towards a more efficient one. Just like the company 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 roles of “middlemen” may become obsolete at some point. To be resilient, firms must be able to constantly innovate in order to add value.

What is the formula to a sustainable success? Mr. Tan’s advice is to always put the investors first and foremost and always maintain a high standard of professionalism, competence and ethical behavior.