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Supplements » Global Industry 2020

New York roundtable: Saying no to the ESG naysayers

Funds Europe – Finally, looking forward to 2021 and 2022, what areas do you anticipate will present good opportunities for you or the wider industry?

Garland – It’s all about sustainability, totally driven out of the UK and Europe. There is increasing demand from our clients in the UK, Europe and also Asia, for sustainable and impact strategies. We have also started to see interest picking up with advisers in the US and Latin America.

Ehret – Credit, Asia and insurance would be the three big things for us. With rates where they are, we think investors are going to be looking for yields. They’ll be going into both public and private credit, sub-investment grade in particular. Investors will continue to look at Asia as a really interesting place to invest. Then, finally, the insurance segment has been an incredibly significant outsourcer of assets, particularly growth assets, here in the US and overseas. That’s a driver of growth.

Van Eck – It’s kind of ditto with just an ETF overlay, because our ETFs are no different than anything else. Our biggest inflow fund this year was a high yield fund and I expect that will also be very popular next year, because I don’t expect the Fed’s policies to change. China has suddenly gone on everyone’s radar screen in a way that it hasn’t before in the fixed income areas.

Coldren – I think portfolio solutions will continue to be a focus of ours as our largest retail firms try to contract and consolidate their brokerage platforms. They feel packaged solutions offer their advisers better choice, better outcomes and a better client experience. Tax management is going to continue to become a bigger differentiator for us, particularly in the US.

The third would be ESG, which is going to continue to gain momentum.

Jones – I do believe that interval funds can potentially offer an attractive opportunity to generate high levels of income in a low rate environment, and the SMA [separately managed accounts] business and the active ETF business can also be interesting as a way to just leverage your existing infrastructure and your core competency to have an opportunity for some organic ways of growth.

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