"A Digital Resurrection? Target assigned, Jon Beckett ('JB') hunts down the value chain between fund buyers and fund managers and tackles the difficult issues head-on. The world is changing rapidly and a new digital threat lurks in the shadows. Get inside the head of one of the UK's most controversial investment gatekeepers. Think differently about buying funds, multi-manager and the way the industry works.
Why write the book? Safe within its bubble, the City's asset management industry has existed largely unchanged for over 20 years. Since first becoming a fund analyst, I have seen the number of dedicated fund analysts/multi-managers in the UK rocket from around 50 in 2000 to well over 5000 today. I felt personally challenged as a fund selector to ask myself the taboo question 'am I relevant?' I wanted to write a digital survival guide (of sorts) for anyone working in the fund and wealth industry. While fund selection practices have largely remained unchanged for a decade; the world has turned on its axis.
Key issues covered? Can fund selectors themselves survive the move to digitalisation? Possibly. Can the value of fund selectors be digitalised? Probably. Currently the fund industry faces many dysfunctions, between selectors and fund managers, and fund managers, distributors and investors: key man misnomer, asset concentration, supertanker funds.. A key factor touched on in this book is the concept of information advantage and how fund selectors choose to interact with fund managers tomorrow. The commodity of information has changed due to Digitalisation and with it the information-advantage of the fund research industry. With some base understanding any investor can become a proficient fund selector. Many in the industry will refuse to recognise these issues, to their peril.
Wet work, it's a dirty business!"