Financial Standard Comments - Asset consultants influence to grow amid industry change Despite pressure on fees from a consolidating super industry, a combination of regulatory reform, increasing demand for less conventional assets and a rise in the amount of money going into super savings will magnify fund managers over-dependence on asset consultants. https://www.financialstandard.com.au/feed/latest?story=24074629 Fri, 16 Nov 2012 15:06:46 +1100 Fri, 16 Nov 2012 15:06:46 +1100 en-AU Copyright 2026 Financial Standard 5 Comment by Lindsay Skardoon (Spectrum AM) The role of gatekeeper is somewhat tainted with big is best. If Asset Consultants really believed in the Mantra of returns rather than extraction of fees the landscape would be entirely different. AC 's do not believe in the belief that strong returns equates to investor wealth they prefer the index model with a large number of people that all sound rather impressive but lack substance.

How else do you explain that in markets which abound with opportunities returns are low and often about index, simply its because most managers are Index Managers and they are often taking fees for services they are not providing. Everyone happily sledges the Hedge Funds but at least you know you wont have a low tracking error. How can an Asset Consultant recommend a trading fund that has a low tracking error , because they do. Either they don't understand the maths or they simply like the big is beautiful mantra and neither generates above index returns.

Asset Consulting actually requires a reasonable amount of mathematical ability yet very few AC 's have the intellectual capital that can handle the maths required.

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]]> Lindsay Skardoon (Spectrum AM) Fri, 16 Nov 2012 15:06:46 +1100