Patel: Future of Active Asset Management Is About Driving Alpha

The video explores the impact of global trade dynamics, particularly the US-China trade war, on investment trends and manufacturing. It highlights the shift in manufacturing to countries like Vietnam, Indonesia, and India. The discussion then shifts to the future of asset management, emphasizing the importance of active management and the role of ESG in emerging markets. Finally, it compares index and active investing, questioning the future of market cap weighting and the potential for new investment strategies.

Which countries are emerging as potential winners in the global manufacturing shift due to the US-China trade war?

• Brazil and Argentina

• Vietnam and Indonesia

• Germany and France

• South Africa and Nigeria

What is a key factor driving the future of long-only asset management?

• The focus on active management and alpha generation

• The rise of cryptocurrency

• The decline of global trade

• The increase in government regulations

In the context of asset management, what does ESG stand for?

• Economic, Social, and Governance

• Environmental, Social, and Governance

• Equity, Security, and Growth

• Energy, Sustainability, and Growth

What is a major reason clients choose index funds over active management?

• Lower fees

• Less transparency

• Greater risk

• Higher fees

What is a potential future trend in index investing?

• Reduction in private market activity

• Development of new index constructs

• Increased focus on market cap weighting

• Stagnation of market indices