Jake's View | Question of balance for fund managers
I entirely agree with these anonymous fund management executives that their focus should be on the investments they make with their clients' money. If only more of them were thus minded. Instead they mostly focus on how to induce their clients to part with more money.
Industry executives say the focus should be on the application of capital. For example if a mutual fund is sold in Hong Kong and that mutual fund invests in European and US equities, that money disappears from Asia. And the capital supports companies in Europe and the United States.
I entirely agree with these anonymous fund management executives that their focus should be on the investments they make with their clients' money. If only more of them were thus minded. Instead they mostly focus on how to induce their clients to part with more money.
But I can't imagine many of them really believing that raising money in Asia to invest in Europe makes money disappear from Asia, as if it somehow makes Asia poorer.
If this is what they think, then send them back to school right now.
I grant you that, superficially, it indeed looks as if this is what the facts indicate. You raise money in Asia and you direct it to Europe. Of course Asia then has less money and Europe has more. It stands to reason.