SharingAlpha's Kaplan: The '$100trn failure' in the asset management industry

Embracing fintech could reverse decline, expert argues

The fact that almost all invested capital has been placed in funds based on their past performance is a "$100trn failure" within the asset management industry, according to SharingAlpha's Oren Kaplan, who said it is more important than ever for fund buyers and DFMs to utilise fintech when making investment decisions.

Co-founder Kaplan said it has been proven that investing based on performance track records rarely works, especially given that some fund managers can perform well for several years, meaning their style could suddenly fall out of favour. "Everybody knows the caveat that past performance is no guide to future returns. It goes beyond a disclaimer - it has been proven not to work multiple times over," he said. "I understand why people do it. You cannot pick a fund manager based on their sense of humour or what they are wearing - so where else do you go? Past performance is the most widel...