Investing For Better

Harnessing the Four Driving Forces of Asset Management to Build a Wealthier and More Equitable World

After several decades of diligently managing asset for some of the largest investors globally, immersing myself with all kind of financial theories, closely observing and reading my fellow asset managers, and sharing my knowledge as a university educator, I made the decision to crystallise my profound passion for the asset management field into written words.

The result is a concise yet distinctive book that sets itself apart from the myriad of existing literature on asset management.

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While many great books delve into specific methods and offer advice for making superior investment decisions, my book takes a distinctive approach by casting a spotlight on the intricate driving forces and the resulting landscape of the asset management industry.

What is it about?

This book serves as a comprehensive guide to the realm of asset management, divided into four parts. Part I establishes the foundation by elucidating the asset management ecosystem and its principal participants, rendering it a valuable resource for students, early-career asset managers, and industry newcomers. Even seasoned professionals can discover insightful nuggets within its pages.

Part II delves into the industry's prevailing conceptual framework, with a primary focus on the active versus passive investment debate. It explores the key industry drivers: fees, size, and competition, and culminates by questioning the significance of the active-passive divide.

Part III introduces a novel framework based on financial intermediation principles. It examines the evolutionary advantages of both active and passive investment styles, considering factors like cost, risk, information, and societal preferences, demonstrating how this model benefits society.

Part IV serves as a concise manifesto for the asset management industry, summarising the key arguments presented earlier. This book provides a holistic understanding of asset management, making it a valuable resource for industry newcomers and veterans alike.

Why did I write it?

I believe that asset management is in need of a higher purpose. More often than not, colleagues in the industry forget why the world needs investment and why the world needs asset management. It is not solely about performance, a large asset base, and high fees; there is a greater purpose to asset management, as it strives to invest for a better world.

There is a growing competition for highly skilled employees, and asset management struggles to attract and retain talent. Many companies, especially high-tech firms, entice employees with soft benefits that extend beyond financial incentives, such as relaxed dress codes and a focus on societal impact. They actively engage in initiatives to address environmental issues and social discrimination, even offering paid time off for charitable activities. Research suggests that young workers prioritise these values over base salaries, leading to a shift toward conscious quitting.

I argue that asset management must embrace a higher purpose to attract and retain top talent. We should move away from the profit-centric image of financiers and commit to making a positive impact on the world. Ultimately, I believe that aligning asset management with broader social and environmental goals is essential for the industry's success in the 21st century.

Where can you get it?

Copies are available at a variety of bookstores, including:

May you find great enjoyment in reading Investing for Better!