Posts Tagged “T. Rowe Price”

A complete round up of news and views from FundForum International 2010

July 6, 2020

FundForum International is the “must attend” annual asset management conference.  The 2010 event continued that tradition, 20 years in the making.    On behalf of our co-sponsors, CACEIS & KPMG, we would like to thank all the delegates and speakers and look forward to bringing you an even more energised event in 2011.

In addition to the coverage of the event by Beverly Chandler,  we’ve gathered the leading articles and commentary from the business news websites to give you a comprehensive review of this years hugely successful event.

We have captured a series of video interviews with some of the industry leaders which will be posted on this site over the coming weeks.   To make sure you don’t miss out, either add the RSS feed to your reader or sign up for email alerts.


A Twitter Overview:

reutersClaireM: IBM’s Suzanne Duncan stirred up the Forum with research that showed the trust gap between providers and investors has worsened this year

reutersClaireM‎: Marshall says doesn’t regret not gating in crisis although assets collapsed. Believes hedge fund industry did itself no favours by gating

Dumes618Fund Forum Exclusive: AEGON appoints Citi as Fund Administration Service Provider to a new Global Macro Absolute Return Fund

reutersClaireM‎: Broderick says as Europe transfers burden of retirement provision to private sector, it will expect costs to fall.

JenLoewiAdams‎: Regulator Eddy Wymeersch says not often that he gets to talk face to face with the industry, so thumbs up FundForum#ffi10

reutersClaireM‎: Faber believes prospects for active mngt are good and a lot of passive strategies will face limitations in volatile low growth world

Fund Fees and self-loathing in Monaco - Financial News

The number of attendees rose this year by a fifth compared with last year. More than 70 companies had stands at the Grimaldi events centre, located on the Monaco beachfront, including KPMG, JP Morgan and Citigroup.

Each morning delegates attended lectures and panel sessions featuring leading industry figures such as Jamie Broderick, chief executive in Europe for JP Morgan, Todd Ruppert of T Rowe Price and Jim McCaughan of Principal Global Investors…. more here


Chiefs told to concentrate on clients - Financial News

The first step in solving any problem is to admit you have one. Amid the yachts, Ferraris and champagne receptions, delegates at the annual Fund Forum conference in Monaco did precisely that.

The tone of the conference was set at the start by speaker, Jamie Broderick, chief executive of JP Morgan Asset Management in Europe.  He said the asset management industry needed to focus more on clients, and those who did not would be left behind.  Investors were concerned about three issues, he said: high fees, an obsession with creating products rather than finding solutions, and a lack of clarity about what was really going on with their money…. more here



The full round up by Claire Milhench of Reuters can be viewed here.  We’ve put some of the key topics from her review below.

Marshall not so gaga for Osbourne - Reuters

Lord Myners played a cheeky game of bull and bear with Paul Marshall, the co-founder of hedge fund company Marshall Wace, at the close of his Q&A session at the Fund Forum in Monaco this morning… more here


Doubts grow over fund firms’ Asia dash - Reuters

Asset managers are ramping up their presence in Asia to tap the cash of the growing middle class but some industry managers are warning that the quick bucks these funds are chasing may be elusive.  Establishing an identity and building distribution networks takes time. Regulatory bottlenecks and a stubborn attachment to traditional bank savings will also act as a brake on business.

“Asia will continue to hog the limelight as a source of new assets but it won’t be the next gold rush,” Amin Rajan, chief executive of consultancy Create, said at the Fund Forum in Monaco…. more here


Allianz plans to boost PIMCO with new hires - Reuters

Allianz Global Investors, the funds arm of German insurer Allianz (ALVG.DE), plans to add about 100 staff this year, with bond manager PIMCO the biggest beneficiary as investor appetite for fixed income products continues.  AGI Chief Executive Joachim Faber said the head count had increased across the entire group by 100 people last year and he expected to repeat that this year.

“The PIMCO business is growing very strongly so it has had the most people added,” said Faber in an interview on the sideline of the annual Fund Forum in Monaco… more here


Fund Managers under pressure to rebuild trust - Reuters

Fund managers have failed to rebuild relationships with investors that soured when the global financial crisis left them nursing billions in losses, leaving their clients even more disgruntled.

Trust between fund managers and their clients has continued to deteriorate two years on from the crisis, a survey by research organisation IBM Institute for Business Value showed, and managers at the Fund Forum in Monaco said the industry faces an uphill task to restore clients’ confidence. “We’d be kidding ourselves if we thought that our institutional or our retail clients thought we (as an industry) did a good job in the downturn. We need to be more transparent and keep products simple,” Martin Gilbert, chief executive of Aberdeen Asset Management (ADN.L) said. … more here


Reprieved fund firms face up to failings - Reuters

Fund managers meeting in Monaco this week for their annual summit may have been given a reprieve by last year’s stock market rally but it helped to paper over the fundamental cracks identified at the 2009 conference.

Industry bigwigs such as Martin Gilbert of Aberdeen Asset Management (ADN.L) and John Flint of HSBC Asset Management (HSBA.L) will debate the best business models for these turbulent times, with managers who fail to reposition their businesses likely to find themselves in difficulty.  The 2010 Fund Forum conference, which runs from Tuesday to Thursday, comes at a time when the sovereign debt crisis has triggered another bout of volatility and investors are showing a reluctance to load up on equities… more here


Fund firms see second wave of M&A - Reuters

The asset management industry is poised for a fresh round of consolidation as economies teeter on the edge of a fresh slowdown, leaving weaker operators rescued by the 2009 rally looking vulnerable all over again.

Delegates to the industry’s annual Fund Forum in Monaco are expecting further M&A, with smaller firms struggling under the weight of new regulations before being picked off by larger rivals, while continuing financial turmoil is expected to put more balance sheets under pressure…. more here



To view articles from the Financial Times, you must have a subscription, details here

Call for greater transparency on EFTs - Financial Times.

Greater calls for transparency have dominated talks at this year’s Fund Forum. Several chief executives say the market needs to make an effort to restore more here

Fund managers told to embrace new rules - Financial Times

Fund managers attending last week’s Fund Forum in Monaco were told to embrace new regulations rather than fear them. more here



Nordic Fund Selectors panel at FundForum International - FundSelection

Successful panel with Nordic fund selectors The room was packed when I moderated a panel with fund selectors from the Nordic region at the FundForum in Monaco this week. It was an honest discussion and the public was very pleased with the openness of the selectors… more here



Paul Marshall offers caution on UCITS - WSJ

A founder of one of the U.K.’s largest hedge funds has warned that investors may be “disappointed” in the more heavily regulatedUCITS funds, which have increased in popularity since the financial crisis… more here



Fund managers gathered here perhaps got a little indigestion along with their breakfast at the first address of the day - MarketWatch

The managing director of Cerulli Associates got things off to a rousing start with a prediction that global funds under management this year are unlikely to repeat the not-so-spectacular growth from last year — a 16.2% gain. But there was even more gloom tinged in that. Shiv Taneja, addressing a crowded room of early-rising managers said that gain from 2009 came wholeheartedly from a recovery in markets… more here


Double Dip? Better Be Nimble And Quick - MarketWatch (video)

Invesco portfolio manager Bernard Aybran talks about the dangers of a double dip recession for global economies and keeping a portfolio protected… more here


Keeping the customer happy and the money flowing - MarketWatch

Tall orders, but those seem to be the general themes for this week’s Fund Forum International, which will gather over a 1,000 asset allocators and 35 chief executives in the small sovereign city-state surrounded by France, known best for its status as a tax haven and refuge for wealthy foreigners.

Whereas last year gathered a group of shell-shocked asset managers who were looking for day-to-day strategies for survival, this year, managers and CEOs will be looking for ideas on how to create sustainable, long-term gains at a time when markets are volatile and investors still haven’t had their faith in managers fully restored… more here

Post Under: Asset Management, General

Consumer Education: Whose job is it and how to do it?

June 23, 2020

An Article by Todd Ruppert, T. Rowe Price.

Todd Ruppert will be speaking at Fund Forum International 2010, 29 June - 1st July in Monaco

Studies across Europe and globally confirm that financial literacy is a growing priority. Yet surveys and academic research show that while the need for financial education has never been greater, there is much work to be done.

In addition to consumers, the investment industry also stands to benefit from a more financially savvy public – and should embrace financial literacy now more than ever.  Clients with greater financial knowledge will be better equipped to make investment decisions appropriate for their goals and circumstances. As a result, they are more likely to be satisfied, leading to stronger, long-term relationships.

Of course, we cannot expect to educate everyone to be their own Chief Investment Officer. Many investors simply do not have the time, interest or wherewithal to make complex financial decision or keep up with managing their investments.

Innovative solutions such as target date funds can, in part, address this piece of the puzzle.  So, too, can services which automatically enroll defined contribution plan participants and increase their savings rates over time, and which are growing in popularity in the US.  These approaches remove some of the complexity from a client’s decision making and – using findings from behavioral finance research – put investor inertia to use for their own benefit.

Offering new products and services in a vacuum, however, is not sufficient, as investors still need to have a basic level of understanding of those products.  Combining automation with investor education will be more effective, although even that has its limitations.  To provide a foundation, we first need to educate the broader consumer market about basic financial planning.

Although financial education can be introduced at many ages, educators, researchers, and parents increasingly advocate starting financial education as early as age eight.  The need is clearly there. In a Junior Achievement-Young Enterprise Europe survey this past March of more than 1,200 Europeans across 19 countries, 78% said that young peoples’ knowledge of their own personal finances is ‘little’ at best.

Similarly, a recent T. Rowe Price Parents, Kids & Money Survey revealed that while 80 percent of parents says they are having conversations with their children about money at least once every few weeks, fewer than half of their children use the lessons on a regular basis, and nearly 60 percent quickly forget the lessons or need periodic reminding. The survey also showed that on average, parents grade themselves a “B-” when it comes to their own overall understanding of basic saving and investing principles.

Facilitating family financial education is one reason T. Rowe Price collaborated with Walt Disney Parks & Resorts Online and Walt Disney Imagineering and to create The Great Piggy Bank AdventureSM, an online game and theme park experience which offers lessons on goal-setting, saving vs. spending, inflation, and diversification.

In Europe, EFAMA recently released a report regarding the long-term savings challenge.  Their call to action for the asset management industry included promoting financial literacy and competence of individual investors.  To ensure the future and strength of our industry, we must embrace this effort.  It’s no longer a question of ‘Should we do financial education?’ but rather, ‘How do we do it?’

About Todd Ruppert, T. Rowe Price Global Investment Services

T. Rowe Price Global Investment Services Limited, is responsible for T. Rowe Price’s business outside of the United States, ex-Japan, and T. Rowe Price Global Asset Management Ltd, which is responsible for the firm’s business in Japan .  Mr Ruppert cam to T. Rowe Price 18 years ago having previously worked for Citicorp and an engineering firm that designed physiological dynamic motion simulator for pilot training.  Upon coming to T. Rowe Price in 1985, he focused solely on business within the US.  He was first responsible for developing T. Rowe Price’s business of managing investments for banks, insurance companies and other third party distributors.

This document has been issued by T. Rowe Price Global investment Services Limited, 60 Queen Victoria Street, London EC4N 4TZ, which is regulated by the UK FSA.  This material is not intended for use by Retail Clients, as defined by the UK FSA.

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