Wealth Feature: The future of investment management

Investment management is in flux, arguably more than it has been in a long time. Active management is under pressure, with investors switching from active to index funds. New “smart beta” products offer low-cost exposures to many active ideas. Exchange-traded funds are proliferating. Markets and regulations have changed significantly over the past 10–20 years, and data and technology—which are increasingly important for investment management—are evolving even more rapidly. Many people are fearful about the financial implications of the Covid-19 emergency which, in the space of a few tumultuous months, has totally transformed life as we know it. The volatility in markets has obviously affected our risk appetite, but many families are scrambling to deal with the income hit as jobs are furloughed or lost, bonuses cancelled, side incomes like property rentals reduced. It’s tough out there and you need little reminding. Add to this the growing sense that things will probably get worse before they get better and it can be hard to see a way through. With the markets facing longer-term volatility, this could be an opportune time for financial advisers to demonstrate their deeper worth. Steven Nathan, CEO of 10x Investments is someone who thinks deeply about these issues, and Michael Avery speaks to him about the future for investment management