Dr Ian Hunt – a blockchain expert and industry veteran – delineates just how bloated the funds landscape is and argues it’s time to go fully digital.
Hunt describes investment funds as “democratising heroes” of the investment business and says they are vital in gaining access to global markets for ordinary investors. Funds enable investors to pool resources and benefit from professional asset management.
However, despite extensive regulation and a vast array of fund options, most investment funds offer similar speculative products, transferring all risk to investors.
As a specialist in digital assets, Hunt sets out a critique of the current investment funds landscape – including a detailed breakdown of various actors – and finally argues for a transformation that would see funds become digitally native.
Native digital funds present a promising alternative to the status quo, providing flexibility in outcomes and reducing complexity and costs through a unified operating model, he says. This innovation allows for diverse risk-sharing and improved efficiency, making investment more accessible and tailored to individual needs.
Apart from this high-level argument in favour of digital transformation, the article also serves as an excellent primer for anyone new to the funds industry, or who is still getting to grips with its structure and complexity.
Dr Ian Hunt is a veteran of the asset management and asset servicing industries, and now a well-regarded champion of digital transformation.
Read the full article here.
