TalkSport article BDO managers have seen the market shift to digital asset managers such as BlackRock Inc., which has become increasingly adept at capturing and selling data, and the rise of blockchain technology, which makes it easier to track the flow of funds.
The biggest asset managers are being forced to adapt and adapt quickly as they try to stay relevant.
The industry is shifting rapidly to a new era, with the rise in asset management, said Jim Ritter, chief executive of the investment management firm BlackRock.
“We are in the new world, where it’s easier to take risks than it was in the old world, and we’re in a space where it is really exciting to have new players emerging that are really interested in the asset management space,” Ritter said in an interview.
As investors look for ways to diversify portfolios, Ritter has become the go-to guy for managers looking to diversified portfolios.
He recently co-founded a new company called Vectis Asset Management, which focuses on diversification and portfolio building.
There are now more than 500 asset management companies operating in the U.S. alone, according to data from S&P Capital IQ, up from about 250 in 2008.
The number of funds invested in asset managers jumped from $3.6 trillion in 2010 to more than $6 trillion last year, according, according data from Morningstar Inc. By 2020, Riter said, he expects the sector to grow to $8 trillion.
Ritter has been pushing the industry to do more to make sure its business models are sustainable and attract enough qualified talent to keep the sector growing.
Banks are looking at how to manage their risk, too, as some see the need to shift to a more diversified approach, said Ben Caspi, president and CEO of the financial services industry group at Morningstar.
Investors are beginning to get more aggressive with their asset management activities, he said.
“I think there is going to be more activity on this side of the ledger,” Caspis said.
At the same time, investors are looking to asset managers for a lot of information on their performance.
Investors want to know how well their portfolios are performing, how they are doing, whether they are on track to achieve their goals and what their risks are, he added.
For now, the industry is seeing a lot more focus on risk management than on diversifying, but it is not a silver bullet, said Michael Farr, chief financial officer of RIT Asset Management.
The industry needs to do a lot better, he noted.
What are some of the challenges in the industry?
Ritter sees three main challenges in asset ownership: The most fundamental is the need for a team of highly skilled and experienced people who are able to make investment decisions, and then to make decisions based on that.
Second is that, like most things in asset investing, it is a highly technical and nuanced subject.
And third is that people need to be able to work independently, so they don’t have to work in the same organization.
But there is a lot to like about asset management.
It is a good investment opportunity, Ritch said.
It offers a range of opportunities, he continued.
It is an efficient and efficient way to manage risk.
The asset management industry is a big player, and there is no shortage of people doing it, he suggested.
In a world of increasing competition and increasing regulation, asset management is going through a boom.
And the asset managers that are going to do it are going get to do so in an efficient way.