Active Fund managers have been decimated by the automation of their industry. ETFs and index trackers have powered ahead. Leaving M&G, for instance, bagging a current value of just 1.5% of their FUM. So what lies behind this transformation? It is of course the rise of computer power.
Index funds rely on computing and automation to power the liquidity and huge fund collectives. Automation is the key, and it is decimating the active manager roles.
But in the IFA sector, the automation represents benefits, and few obstacles. The IFA advises, and creates a feel good factor for the customer. The automation is in the back office.
The vast majority of people find managing money effectively boring. Hardly surprising, since cash itself is a moral vacuum, to all but the deluded. Dedicating a life to teaching, medicine, law or study, is a somewhat more worthy calling for your eldest child. Any parent must surely sigh when their child expresses the wish, “to make a lot of money.” There is a bit more to life than that.
Advisers advise, and there is and always be demand for advice.
Leave your back office to BAT, and get on with advising.
BAT AI: THE FUTURE OF COMPLIANCE: POWERED BY AI
BAT are launching their second version of the AI file checker on 27th June 2025.
Demo’s available here.