Question

assess the trends and issues in fund Management industry

Answer 1

The recent trends in fund management industry are as follows-

A. Asset managers are passing their pain to infrastructure providers and their processing fee pressure down to administration and infrastructure providers triggering a wave of consolidation.

B. Technical skill are not the answer to all the problem.

C. Asset managers are heavily investing in API technology to enable them to plug into larger provider ecosystem and an earthing of new business.

D. There has been a trend related to alternative investment and cautious evolvement of alternative investment.

E. There has been a demand for increased transparency and lower fee-based product to disrupt fee models.

Issues which are found in fund management industry-

A. Fund managers are dealing with extreme values as valuations are extreme in different assets.

B. There has been parameter calibration before simulation running inform of implied volatility and risk neutral versus Real world probability.

C. There has been challenges related to operational risk management involving maintaining complex policy and monitoring of allocations.

D. There has been reporting which is driven by regulatory fragmentation.

E. Improvement of analytical capabilities along with enabling with automation and digitisation.