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Summary

This Friday morning’s musing is about sharing thoughts on the future of money management.

I share some unique perspectives from two friends. One co-managers $1 billion, of equities, on the buyside. The other spent 12 years on Wall Street.

I don’t buy the ETF hype.

This morning, it is rainy and dreary day, here in Boston, so I am going to switch gears. My Friday morning musing is about sharing a few thoughts on the future of the asset management industry and what the business may look like. At the outset, I am wise enough to know that predicting the future is tough, so these are merely a collection of thoughts and ideas. It is all about putting them “out there” and seeing what the Seeking Alpha readerships thinks about the subject. I will share my views, I could be right, I could be wrong, but it is a worthwhile topic, perfect for a Friday.

The genesis of this idea, similar to most of my ideas that randomly pop into my head out of the ether, is from my synthesizing process, which includes collaboration, reading, and observing the world. More specifically, for this idea, I tapped the collective wisdom from two very interesting conversations with two friends. One friend co-manages $1 billion of equities in NYC mutual fund land and the other friend spent upwards of twelve years moving in the elite and storied Wall Street circles, including an approximately 8 year span on the NYC hedge fund circuit.

As a wandering philosopher myself with an odd passion for the art of securities selection, I felt compelled to share these conversations. Again, these could be right, they could be wrong, but in the spiriting of sharing, which is one of my core tenets, let’s get started.

Quite simply, the $16 trillion mutual fund business is an evolving landscape, where changes, disruption, and new ideas are afoot. ETFs, now a $2.56 trillion business, in the U.S., are all the rage. These instruments with the promise of lower fees and all day tradability of a common stock are en vogue. I tip my cap to the brilliant, just brilliant market campaigns by BlackRock (NYSE:BLK), Vanguard, State Street (NYSE:STT), and JP Morgan (NYSE:JPM), PNC Financial (NYSE:PNC), Bank of New York Mellon (NYSE:BK) among others, would evoke a bedazzled smile out of the great Don Draper. See this article written by Sumit Roy from the website ETF.com.

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