Challenges and opportunities in the asset management industry today (European perspectives)

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Jean could you maybe to give us one top challenge and one top opportunity as you see it in the asset management industry today well i would say that it’s a of course tied to the environment and one is that to the other i think the top challenge is to help many of our clients navigate what we what we are now facing which is a low interest rate environment for

Much longer than initially anticipated which has probably led to some miss allocation of assets within the asset allocation policies of many of our clients and you have a lot of clients that i’ve gone for shorter duration assets expecting a return to normalize a monetary policy and which is not gonna come anytime soon but that gives us also an opportunity an

Opportunity to do what to bring our clients to become more comfortable in asset classes or or investments with which has characteristics that they have been less familiar with and of course i’m talking about the illiquid assets be they private that private with the infrastructure blended finance if we want to push that towards a sg categories and that is an

Opportunity and for an a multi boutique model as as our as the one we have with a wide variety of scopes and expertise i think we can be particularly relevant in that conundrum super and so we face a very very uncertain macroeconomic environment at the moment lots of trade tensions lots of turmoil around the world rising populism what aspect of market turmoil

Worries you the most or does it present some opportunities well i would say that i i’m building on what i just said as we think about our clients and ourselves we are facing a situation where embracing the liquidity return trade-off is the way to provide safe retirement to our ultimate and clients at the same time your central authorities which have implemented

A very loose monetary policy which are forcing us asset owners and asset managers and going into that category there they’re increasingly creating regulations or public debates around the move towards the liquid asset so basically we’re in a schizophrenic situation where we are forced to do something that the central authorities have created yet are preventing

Us from doing in a most efficient manner i think the environment will have to evolve regulations will have to evolve and over time i think we can address that but it’s gonna be a fairly tumultuous period for many of our clients in the next few years and we have to adapt to that environment could i just ask you around talent and the type of skill sets that you

Think are needed in the future and in the future in an asset management firm i think we have to think in two ways when it comes to talent we have to recognize the time this fee has been slow to change and has not been very attractive to young people who actually embrace change in the asset management industry i’m afraid to say a year is probably still a year if

Not two years when you have many industries where the pace has substantially increased the second thing is that we have to to to remember is that as we think about embracing non-financial metrics in our investment processes it probably requires different skills that mean maybe scientists data scientists but not only data scientists just pure engineers healthcare

Professionals people that can actually interpret their non-financial metrics and use those to have a constructive dialogue with corporates and right now we are not adapting our workforce enough to that new dimension of the industry and the third thing i would say is that we really need to to attract young people it’s a bit what i said at the outset but i’d like

To say this is not your father’s oldsmobile and even though we may think that millennials have their smartphones they don’t want it there they don’t want to talk to their father’s financial adviser they want to have people in front of them that can talk intelligently about financial advice that are of their generation and our studies shows that young people when

It comes down to their money they want to talk to somebody so it’s still a people’s business soup right thank you so much

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Challenges and opportunities in the asset management industry today (European perspectives) By PwC