In the the future, “asset managers will be on their way to transforming digital capabilities using tools such as blockchain”, said Denise Voss, chairman of the Association of the Luxembourg Fund Industry (ALFI).
Voss predicted a move towards artificial intelligence and an increasing need for a change of management for some business models with asset management.
Discussions surrounding blockchain, artificial intelligence and distributed ledger technology (DLT) featured heavily at this year’s conference, as panellist said that younger generations—the future workforce—have an awareness of the opportunities technology can bring in terms of investment through robotics advice and applications.
Another panellist predicted there will be a domination of artificial intelligence (AI) in portfolio management in the future, especially within exchange-traded funds (ETFs).
One panelist questioned whether there will come a time when AI might replace asset management roles, but stated “it depends whether and when a similarity in capability will be reached, a time when AI can help judge human ability”.
The panel also discussed the emerging theme of environmental, social and corporate governance (ESG) and agreed that firms need experienced members of staff to help them with issues surrounding this.
One panellist said ESG is seen as separate topic to technology within asset management, but she predicted that it will be integrated in to technology moving forward.
Another panellist concluded: “The easy times are over—with ETF and AI, as well as tougher regulation, we are about to go in to a rough patch, only the strong will survive”, she warned.
