The Hindu Business Line : ICI meeting to deliberate on `Shareholders First'

THE stage is set for the world's largest gathering of money managers, courtesy an event that will be hosted by the Investment Company Institute (ICI), US, from May 11 to 13. The latter's general membership meeting, being billed as the biggest get-together of mutual fund executives and service providers, will be followed closely by practitioners and users alike.

Interestingly, the theme of the meeting is `Shareholders First', which, in our parlance, may be roughly translated as `Unitholders First'.

The asset management industry in India too may track the meeting's outcome with a view to learning more about practices that are followed in what is obviously a vast and widespread market for MFs. Among the issues that may be pursued particularly keenly by Indians are those related to retirement assets and the competition faced by MFs from alternative investment products.

Meetings like the one lined up by ICI are significant because they focus on many practical issues concerning investors, especially problems that they so often face. In India, one is aware of get-togethers organised by individual fund houses, distributors, chambers of commerce and media organisations.

AMFI, the MF body in this country, has also taken a few initiatives in this regard. However, much more needs to be done.

So what can one expect the money management specialists to do when they gather for discussions? As ICI puts it, industry leaders will analyse video clips of recent interviews with shareholders (read: investors). In fact, the general session will feature discussions with a cross-section of investors, who will describe their investment patterns, concerns and expectations about the industry and their portfolios. The experts will then dwell on the `challenges and opportunities' presented by these investors.

Also, there will be deliberations on two of the industry's favourite topics: Changing investor behaviour and investor education. There will be sessions on mutual fund distribution and media perspectives.

Interestingly, a panel of analysts will share their views on what the fund industry might look like in five years. The talks will cover cost pressures within the fund industry, mutual fund pricing and the economics of fund distribution.

There will be `breakfast discussions' on subjects like close-ended funds, compliance, retirement issues and technology.

Of particular relevance for investors in India is a theme titled `Making Retirement Income Last'. As ICI has pointed out, baby boomers will soon need education and advice on "how they can make their savings, pensions and investments last for the duration of their retirement".

Incidentally, one of the speakers on this subject is a person of Indian origin - Mr Sanjiv Mirchandani, Executive V-P, Product Management, Fidelity Investments. And as for competing investment options, ICI members will dwell on how MFs are responding to the fight put up by hedge funds, collective investment trusts, exchange-traded funds and the like.

A special guest panel discussion, lead by a financial journalist, will discuss myths that seem to persist for some investors and facts that should guide decisions at the time of growing individual responsibility for retirement planning.

Panel members will also share their views on building effective communications between the media and the MF industry.

Feedback may be sent to nilanjan@thehindu.co.in

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