In advance of the event, Delano checked in with Neil Wise, head of sales & relationship management and member of Clearstream Fund Centre executive board. He speaks on the “Improving value for investors: is drastic change needed for success?” panel, at 11:30am.

Aaron Grunwald: What do you want the audience to get most from the “Improving value for investors: is drastic change needed for success?” session?

Neil Wise: While investors continue to look towards increasing value, the regulators are continuously (and rightly) looking to improve the safety of the products which investors buy. This creates a fascinating dichotomy between these two age-old elements, risk vs reward. The funds industry, just like the entire financial industry, is in a phase of change. Higher cost, regulatory requirements and changing client needs are putting established business models to a test. We have to rethink processes, products and our business models now to create sustainable solutions that add value for all market participants.

From your point of view, how can asset managers improve value for investors?

Asset managers over the years have proved to be fantastically creative when it comes to creating the right products for investors. But I think we need to better interpret ‘value’. Is this better returns, a safer long-term product, increased exposure to ESG-related investments, or access to different products such as private markets. There really are many options for the asset managers to position improved value.

What is causing greater margin stress for fund firms this year: fee pressure or higher costs?

It is clear that with the current economic climate, that costs have increased, and with a competitive marketplace, fees are under pressure. But it’s not just competition within the asset management industry which needs to be considered, investors have moved to other asset classes entirely--fixed income, equities, even cash. Net interest income (NII) can limit the pain in the short term, but how long will the move away from funds last, and what do asset managers need to do to get the investors back?

Aside from your own talk at the Alfi event, which session are you most looking forward to hearing, and why?

I’m very much looking forward to the “Engaging with investors in times of volatile markets” panel [editor’s note: Tuesday 21 March at 10:20am]. The current economic developments have made it even more important to communicate with your clients and investors to find mutually beneficial solutions. Sometimes the emotional intelligence required to keep your nerve can be the difference between long-term gain and a major financial setback!