From short-term salesmanship to long-term stewardship: A paradigm shift in the asset management industry
In this paper published by the 300 club, the authors note that asset managers need to reinvent themselves in the interest of their clients and greater returns. Specifically, they need to shift from a strategy of short-term salesmanship to a strategy of long-term stewardship. Since 1950, the holding period of professional investors in Wall Street stocks has decreased from 8 years to 11 months. In London, at present, the holding time is 10 months. This short-term focused product cialis pushing adds no value, the authors note.
In order to successfully implement the transition from short-term to long-term offerings, the industry would require new leadership and an adoption of a long-term focus that is more clearly aligned with clients’ interests. The paper offers thoughts and strategies as to how this can be achieved and provides a poignant commentary on the position of the asset management industry in 2012, going into 2013. Although nothing here is particularly new, it does reinforce a very important message.
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