There is nothing as potentially transformative for asset management than the digitisation of the industry. However, according to Accenture, while many firms have adopted certain innovative technologies, few have fully absorbed the potential of digitisation into the investment management business cycle.
Digitising asset management is about shifting definitively towards a customer-centric mindset. And there is plenty of evidence to show that properly integrating digital technology can give an asset management company a significant competitive advantage.
Asset management has traditionally enjoyed relatively high margins and a lengthy period of stability. As such, there has been little appetite for any profound changes in the way the asset management lifecycle is managed. And while some are already achieving the kind of digital transformation that will future-proof their business, others may find that coronavirus pushes them to do so earlier than planned. …
It is perhaps the question I get asked the most, and one I’m always happy to answer: what is the best investment strategy?
When you begin your investment journey, you’ll encounter a huge range of different ideas about what the best strategy is. And ultimately, you need to decide what you are trying to achieve and then build an investment strategy that works for you.
Functional factors are important, including your capital resources, cashflow and expected return, but so are more abstract factors, like whether you want to include socially responsible or green investments.
One guiding principle I say to every investor is to use a strategy which spreads your risk and provides a portfolio with a mix of high and low risk investments. …
If you are ever faced with a decision about whether to stick with a troubled investment or divest and move on, it’s well worth learning from my experience of Storm Mountain Development.
The Canadian company was founded in 2011 to rescue The Foothills real estate project, which faced a seven-figure loss. The decision to invest a further $C15 million saved the project, resulted in a large profit and ensured the development of much-needed housing on beautiful Vancouver Island.
The decision-making process and the reasons for committing to a major investment provide valuable lessons about how and when to invest in real estate. …