CFA Institute
November 16, 2018
Shaping the investment industry for the greater good.

The Future of Investment Management

The investment management landscape is changing, fast. Do you know what the future has in store for your industry?

The new book from CFA Institute Research Foundation, The Future of Investment Management by Ronald Kahn, explores key ideas and trends that have influenced the industry over the centuries, from its earliest recorded history in 1700s Netherlands right up to today, and looks ahead to how things might progress in the next ten years. Against the present-day backdrop of rapid change, Kahn analyzes how our understanding of risk and expected returns has evolved, and how current directions — specifically seven recent trends — will shape the future of the field:

- A shift in assets from active to passive investing

- An increase in competition among active managers

- The changing market environment

- The emergence of big data

- The development of smart beta

- An increased interest in investing for non-return objectives

- And fee compression.

At the heart of Kahn’s research is an optimistic message: although the industry is in a state of flux, this disruption can present great opportunities, particularly for those just entering the profession. Technological advances and the shifting boundaries between active and passive investing will make way for new products and sources of information that can help managers outperform.

To predict where investment management is going, we need to understand where it’s been. 

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