n the last post, we were left with the suspicion that the asset management industry has some work in front of it to be “ready, willing and able” to create value for its investors.
- Are we ready to radically change our processes and infrastructure and mindsets?
- Are we willing to completely restructure our fees and operate with full transparency to be truly aligned with our investors?
- With our existing people, technology and capabilities, are we able to offer real risk-adjusted performance while cutting costs by up to 90% and delivering real-time engagement for our investors?
Changing the industry
In my first post, I talked about the incredible value of finance. The current trajectory of asset management is not creating value for investors. Rather, it seems to be creating value for asset managers! This needs to change.
Here at Noviscient, are working hard to show what is possible in our industry. We are implementing change along three dimensions.
Theoretical framework, business model and technology
We operate within a deep probabilistic modelling framework that can fully handle uncertainty and ambiguity. In essence, this means using a model that offers a more accurate fit to the realities of the financial markets and enables better decision-making.
We are restructuring our business model to focus on performance for investors by partnering with technically-gifted systematic traders from around the world within an incentives structure that is purely profit-share with no management fee.
We use a modern, open-source technology platform to dramatically reduce costs, create scalability and improve the engagement experience for our investors.
In my next post, I will elaborate a little more on what we are doing, and how it allows us to differentiate while creating value for our investors.