Tesco
The Age of Asset Management?
Article

The Age of Asset Management?

Andrew G. Haldane
Bank of England, 2014
Read the article

Read or listen offline

audio autogenerado
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
audio autogenerado

Editorial Rating

9

Qualities

  • Analytical
  • Innovative
  • Scientific

Recommendation

Although banking has been subject to intense regulatory focus recently, asset management remains largely in the shadows. Yet the growing size and influence of this sector point to new, unexpected risks to financial markets. In this speech exploring the role of asset managers, Bank of England chief economist Andrew G. Haldane sheds light on a subject that doesn’t get much attention but that could have a huge impact on world economies. getAbstract recommends this timely, sobering report to fund managers, policy makers and financial executives.

Take-Aways

  • Asset managers wield more and more influence in the financial system. Assets under management stand at an estimated $87 trillion worldwide, roughly double their early-2000s level. The sector may total $400 trillion by 2050.
  • As the role of asset managers grows, the potential for future market risk grows as well. More investments in alternative and illiquid assets are changing risk parameters.
  • The increasing herd mentality of institutional investors poses a threat by inflating and deflating asset prices, which can widen price swings in both up and down markets.

About the Author

Andrew G. Haldane is the chief economist and an executive director at the Bank of England.

Comment on this summary or Comenzar discusión