#assetmgmt

#silvercrest #assetmgmt #wealthmgmt (at Daytradereport.com) https://www.instagram.com/p/CDJcjl2pTyT/?igshid=5ehq2774eu5o

Asset Savvy is a way of thinking that highlights our approach to asset management - hear more about our new program from the employees who are making it happen.

"Profit margins in the asset-management industry were 39% in 2014, according to BCG, a consultancy, compared with 8% in consumer goods and 20% in pharmaceuticals. [..] a study by Standard & Poor’s, which compiles the S&P 500 index, among other things, found that 91% of active managers in emerging-market equities failed to beat the relevant index over ten years, and that 95% of active bond managers underperformed. [..] Technology also means that the strategies of active managers can be replicated at much lower cost. Take value managers, who claim to be able to beat the market by picking cheap shares. A computer program can comb the market for stocks that look cheap relative to their profits, asset values, or dividends; investors have no need to worry that the active manager might lose focus or change style. When it comes to choosing between asset markets, robo-advisers, using computer models, can help investors manage their wealth for a very low fee. [..] Retail investors increasingly choose one-stop-shops, such as Vanguard. These investors are buying cheap exchange-traded funds (tracker funds that trade on the stockmarket) or all-in-one multi-asset funds (a mix of shares, bonds and other investments), rather than trusting equity specialists. Passive powerhouses like Vanguard and BlackRock, both of which also sell actively managed funds, are the main beneficiaries of the upheaval in the industry. In 2015 they captured almost half of the industry’s net inflows. [..] For investors, this is good news: the industry may finally start benefiting them as much as it does managers."