Future state of the investment profession

[Cigarbutt]

Thought this recent CFA publication was worth sharing.

 

https://www.cfainstitute.org/learning/future/Documents/future_state_of_investment_profession.pdf

 

Takeaways for me:

 

-Know the rules before you play the game.

 

-On robo-advisers and “smart” artificial intelligence. Reminds me of “smart” beta investing. When pushed too far, even good ideas can become counterproductive.

 

-On blockchain technology disruption. “The Economist described blockchain as the great chain of being sure about things.”  I would humbly add:  “A chain is only as strong as its weakest link.”

 

-On scenario planning: “We prefer scenario planning to forecasting, which typically represents a “best guess.” Scenario planning is about opening minds and painting pictures of the future that decision makers can refer to when digesting current news and making investment and business decisions.”  Perhaps just a fancy way to define divination and fortune telling.

 

-On purposeful capitalism. Yeah right.

 

-The section on page 16-17: “The problem with the investment management industry”  The industry is not a net value creator. To the contrary.

 

And then what else is new?

 

[Guest longinvestor]

When will the 0.2% fee regime become the norm?