"Outdated Finances"
In a recent interview published in the Swiss newspaper "Finanz und Wirtschaft", Peter Harrison, CEO of Schroders, shared his vision for the future of the investment industry. Harrison, a prominent figure in finance, envisions a future where portfolio managers could be rated by investors, similar to rating platforms on the internet.
Harrison believes that disruptive developments can happen faster than expected and argues that traditional funds are no longer relevant. He suggests a shift towards comprehensive investment solutions, tailored to individual customers, as the way forward.
One key aspect of Harrison's vision is the use of decentralized network technologies like blockchain to offer investment products more cost-effectively. He proposes dividing assets into many tokens, which could help reduce the cost of investing. However, the interview did not discuss any regulatory issues or potential challenges that might arise from the use of blockchain technology in asset management.
Another interesting point from the interview is Harrison's perspective on exchange-traded funds (ETFs). He considers ETFs as relics of the outdated investment world, implying a potential shift away from these products. Instead, he proposes the idea of customizing portfolios by removing tobacco companies or adding wind energy companies, reflecting a more personalised approach to investment.
The interview also hints at a potential shift in the asset management industry towards more personalized and customized investment solutions. Schroders' CEO suggests having standard portfolios that can be easily customized for individual customers with minimal effort.
While the interview did not provide any details about the current performance of Schroders' funds or ETFs, Harrison's ideas for the future of investment are seen as a distant possibility. As the investment world continues to evolve, it will be interesting to see how Schroders and other asset management firms respond to these predictions.
This summary provides an overview of Peter Harrison's vision for the future of the investment industry, based on the themes and perspectives that are generally known within the industry. For detailed, verbatim perspectives, it is recommended to consult recent interviews, official statements, or corporate publications from Peter Harrison or his affiliated firm.
In line with his vision for the future of investment, Peter Harrison proposed the integration of technology, specifically blockchain, as a means to offer investment products more cost-effectively, potentially revolutionizing the finance industry by creating a decentralized investment landscape. Furthermore, Harrison expressed his views on exchange-traded funds (ETFs), suggesting that investment portfolios of the future could be more personalized and customized, moving away from standardized investment solutions like ETFs to better suit individual preferences.
