The Money Maze podcast is relatively new and Will Campion, a former colleague is one of the co-founders. They have had an excellent roster of guests, in spite of their novelty. I enjoyed this episode with Peter Harrison, CEO of Schroders. Full disclosure: Peter is an old friend and former client and Schroders continue to be one of my clients in my institutional business.

The reason to listen to this podcast is that Peter gives his views on the future of fund management and if you are going to invest in equities, you need to understand the disposition of one of the largest market constituents. Passive vs active is obviously the key debate here, but Harrison made this astonishing prediction:

ESG will not be around in 5 years

He continued that ESG will cease to exist as it will be a given for every fund manager and will simply be a part of the process. I agree with the direction but his timescale is shorter than I expect.

There are 29,000 finanical advisers in the UK (servicing a population of 65m peopel) and their average age is 59.

This was new to me and an astonishing statistic - I think I read that Schroders now owns a controlling stake in Nutmeg, a modern fund manager targeted at the Millennial generation with passive investing based on your computerised preferences. Harrison foresees a future in which you dial in your UN 19 goals preference and the system allocates your assets to a very different mix. Clearly, 60:40 is a thing of the past but he envisages investment in real assets, with blockchain employed and a division of private equity vehicles for the private investor.

A short and enjoyable podcast.

Post a comment

Log in