POWERED BY MOMENTUM MEDIA
Information overload creating legacy issues
The vast amount of information at investors' fingertips "completely changes the cost structure" of the funds management business, according to Dundas Global Investors (Dundas) director Russell Hogan.
"You can get so much information now without ever having to leave your desk. You've got this incredible pipe that's delivering information to you faster than you can consume it," he said.
Six to seven years ago, companies spent considerable resources travelling around the world to visit companies, but a lot of that information is readily available via the Internet - and older fund managers have legacy issues as a result, Hogan said.
"With a team of seven people and an office in Edinburgh … we can do pretty much the same job that 60 people did 10 years ago," he said.
"That just transforms your economics … if you build your firm around the availability of that information then you can have a completely different cost structure from the firms that have been around for years," Hogan said.
Alan McFarlane, who is the chief executive of Dundas as well as its founder, said there is so much information available to fund managers that they simply can't consume it all.
"You can just get sheer overload …You're almost overwhelmed by the amount of opinion and analysis coming your way, and that's a big change from the past," he said.
The challenge can be knowing when enough information has been consumed, McFarlane said.
"There comes a point where you have got sufficient information to make the decision. Then it becomes about judgment," he said.
Dundas is a boutique Scottish fund manager that was established in 2010 by McFarlane. The firm secured an Australian distribution deal with Apostle Asset Management earlier this year.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
