Why Passive Investing Increases Corporate Activism (Knowledge @ Wharton)
Many market observers have assumed that passive investing decreases pressures on individual CEOs or board members to produce real change in their companies. However, a recent study found the opposite: since funds are stuck with certain stocks, fund investors have extra incentive to improve those companies, compared to active investors who can simply drop any investment in a poorly run firm.
The Blackrock tale told in the UK: ETFs & Robo-advisors (Daily Fintech)
In the US, 50% of ETF volume is from retail. In Europe, it is only 5%. European robo-advisors are lagging their US counterparts in AUM, customers, revenues, but is it an emerging opportunity or a dead-end to chase the European market?
Five factors that differentiate Africa’s fintech (CNBC Africa)
Unlike North American and European fintech, African fintech has no established financial services to “disrupt.” Instead, they’re building an entirely new infrastructure from scratch. 80% of the continent has no access to financial services. The desktop market never developed; the mobile market is coming first, and big data is a bigger deal.
The Wealth Management Relationship: The Data or the Advisor? (Finance Magnates)
As wealth continues to move towards younger, tech-savvy hands, the debate continues: are human advisory firms becoming irrelevant? Robo-advisors are betting that data is important enough to replace humans, but might need to spend more time thinking about how to leverage their data for decisions.