Regulation Driving Up Asset Management Business Costs, UBS's Harford Says

The video discusses the current trends in asset management, highlighting the natural consolidation due to increased costs and regulatory barriers. It emphasizes the importance of delivering value and transparency. The demand for illiquid assets and alternatives is growing, driven by the search for unique, uncorrelated asset classes and pre-IPO opportunities. The video also explores safe havens in the current market, noting the challenges in predicting market movements and the potential for a recession.

What is a key reason for the consolidation in asset management?

• Decreasing market opportunities

• Increased costs and regulations

• Lack of investor interest

• Technological advancements

Why are illiquid assets commanding a premium in the current market?

• They are easy to source

• They have low subscription rates

• They offer high liquidity

• They are uncorrelated and unique

What is a challenge faced by funds interested in illiquid assets?

• Regulatory barriers

• Difficulty in sourcing products

• High competition

• Lack of investor interest

Which asset is considered a safe haven due to its valuation?

• European equities

• Japanese yen

• US corporate credits

• Emerging market bonds

What is the speculation regarding the next market correction?

• It will happen within a month

• It is imminent within weeks

• It is expected in over a year

• It will not occur in the near future