IMpower FundForum, the wealth and asset management event, takes place in Monaco next week. Among the many events taking place over the course of the three-days are a couple of panels on the role of culture in brand development and manager selection. Here panel moderator Jean-Francois Hirschel, chief executive of the Geneva-based financial consultancy H-Ideas, shares some thoughts.
Our society needs a solid foundation of trust between asset managers, their clients and their beneficiaries.
The demographics of our world are such that asset managers have a huge responsibility to make savings productive for a growing retired population. So how can a manager selection process aim to foster this trust? Certainly by a thorough review of the usual parameters such as firm structure, investment process, performance and fees. But also by analysing the deeper identity and culture of the company: what drives the management?
Why do employees get up in the morning to go to work? What are the values that the teams live by? This can create alignment between asset managers, those who select them and the ultimate beneficiaries. Because it goes deep into the real motivations and drivers of each party.
This is not without its challenges: how do you measure culture? How do you compare the cultures of different organisations on a like-for-like basis? There are solutions to overcome these, and they are worth exploring for the sake of constructive, long-term mutual understanding.
