BC NA December 2020

CORPORATE FINANCE
of the performance of the endowments
of Yale and Harvard, both of which are
amongst the largest university endowments
in the world. With a staff of 30,
Yale believes in the model of managing
investment managers. Harvard, on the
other hand, has had staff up to more
than 200 individuals and performed a
hybrid of selecting its own investments
and managing investor managers.
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either be on the basis of a percentage
of assets under management and/or a
percentage of profits over a specified
amount. This implies that if the investor
had invested in the same assets by
themselves, then the investor would
generate a higher return.
In addition to the benefits mentioned
earlier, engaging with an investment
management firm allows businesses to
focus their efforts on their core operations.
Furthermore, it allows the business
to have flexibility when they want to
change their investment strategy. A
good example of this is the comparison
WHAT ARE THE CURRENT
TECHNOLOGY TRENDS AND
INNOVATIONS IN THE SECTOR?
Similar to other industries, technology
has become increasingly important to
enhance customer experience. This
includes digital onboarding of new customers
and providing transparent and
up-to-date information on the status
of the customers’ investments.
Furthermore, there has been a significant
rise of robo-advisors which
automate investment management
through the use of algorithms, and
thereby making investment management
services more accessible for a wider
demographic, as well as an increase in
availability of exchange traded funds that
aim to mirror performance of a particular
DECEMBER 2020