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GE Asset Management and the
Emerging Trends in the Asset
Management Industry
By Wang Yi
PKU NEWS 2005—04—11
http://ennews.pku.edu.cn/news.php?s=113270958
Peking University, Beijing, April 11, 2005: Mr. Michael J. Cosgrove, executive Vice
President and Chief Commercial Officer of GE Asset Management came to Peking
University to share with students and professionals the development experience,
talking about the trend of world investment and management and discuss the
development of commercial opportunities in China‘s investment and management
field.
In his 50-minute speech, Mr. Cosgrove gave a brief and technical introduction of
GE‘s experiences in China, GE asset management and its interest in China. The
history of GE in China goes back to as early as 1906 and in 1994 GE (China) was
established. In the coming 2008 when the Olympic Games will be held in China, GE
will go on touching Olympics in many ways. Talking about GE asset management,
Cosgrove first defined investment as taking care of someone else‘s money. In GE‘s
principle, one should first have an idea, or the vision, then make it into a plan,
however, unless he has it executed, the vision doesn‘t become real.
The growth at GEAM depends on market, product and client. The key emerging
trends in asset management include: key clients------the plan sponsors; funding
pressures------shifting focus from asset to liability management; searching for
increased alpha------alternatives investments have become mainstream; searching
for decreased beta------investing in index and enhanced strategies.
Finally, GEAM‘s interests in China lie in both investing in the China‘s equity market
and providing money service management that serves to Chinese entities.
In the Q&A part, Mr. Cosgrove answered questions raised by BiMBA students,
including the most critical qualifications for a manager, the key elements of GE‘s
success, risk management, GE‘s coping with China‘s policy makers, etc. The three
most important criterions for a manager Cosgrove said are as follows: Life is a
continued process of learning; one needs to listen to others so as to make
modification and be success; one also needs to be able to communicate with others.
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