The Hindu Business Line : Time to see international trends and practices

At a time when market regulators from all over the world are meeting in India, it is time for our investors to look at trends and practices that are relevant internationally. And for those of us who dabble in mutual funds, here is news in the shape of one of the world's largest gatherings of fundmen, courtesy the Investment Company Institute's general membership meeting. It will take place in Washington next month.

Now, before you, the Indian investor, pooh-pooh this, saying ICI is all too American, check out the highlights of the conference and decide things for yourself. We have already done a bit of reading on the meet and this is what we have to share with you.

The programme's top draw - titled `The New Environment for Buying and Selling in an Internet World' - will explore the impact of digital distribution and the manner in which this has moved out from mainstream markets to what ICI says is a "dizzying array of niche products".

There will be a concurrent session to explore how asset managers can best meet the needs of institutional consultants and professional buyers.

Talking of products, ICI is of the view that a range of new products now crowds the funds space. There will be a session, captured by a panel of senior investment industry executives, on these and their primary attraction for investors, sponsor and distributors. The panellists will explore whether the alternatives are competing with funds or whether they are actually complementary.

ETFs to be in focus

On another front, there will be a round of discussion on ETFs (exchange-traded funds), a genre that has become quite popular in recent times. The growth of ETFs, the diversification of these investments and their role will be discussed.

Incidentally, the effects of active indexing will be discussed separately. Further, the growth potential for FoFs (fund of funds) will be another topic for the convention.

Those willing to allocate more than a small part of their time to retirement planning (and this set of people includes Indians as well) may tune in to a session that has been named `The New Wave of Retirement Income Products'. A successful retirement income strategy, notes ICI, has multiple elements, tailored for a retiree's specific needs. Also a key question here is: How are financial outfits helping retiree's manage their transition from work to retirement?

Behavioural research is a big topic for the ICI convention. There will be discussions on new research done into ways of promoting savings opportunities. The two major issues that will be raised are:

* How do individual savers make savings decisions as they map their own financial future?

* How can financial agencies understand such individuals (and all their biases and compulsions) in a better manner?

And, before we end, here's something really remarkable. One of the featured speakers is an expert on China - Mr James McGregor - who will share his experiences with regard to the globalisation of mutual funds. The high-point of this is made up of strategies for succeeding in China, the world's fastest-growing consumer market.

Incidentally, Mr McGregor, who was formerly with The Wall Street Journal, has written a book with a very interesting title: One Billion Customers - Lessons from the Front Lines of Doing Business in China.

One wonders when the rest of the world will start talking about the Indian market on similar lines.

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

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