60 Seconds With... Author JB Beckett
We all know what they are experts on, but we want to know what makes our speakers tick. In this series, we sit down with some of our key speakers for 60 seconds to find out a bit more about them before they take to the stage at FundForum International in Berlin, 6-8 June 2016.
60 Seconds with...
Jon 'JB' Beckett, Author of '#NEWFUNDORDER' and consulting Chief Investment Officer to the Gemini Investment Management Ltd board.
1. What is your personal philosophy?
Try to be democratic but I'm also cursed by being naturally contrarian and creative. At times a clown or deliberate buffoon. I admit I probably enjoy the 'black sheep' label ('turbulent priest' as one ex colleague put it). My views are probably more offensive to many in the City than my tattoos, albeit I suspect it's a close run thing. I frankly couldn't give a monkeys. The truth is I am a fund geek, just one who likes heavy metal and cars.
As a professional fund buyer, for many years, I had become unsettled by the rapid expansion of asset and wealth management post Big Bang, the fees being charged, complex value chains, lack of transparency, poor outcomes and asset concentration that damages competition. At the heart is the flawed Annual Management Charge and a strong bias to Star Manager Culture. I refer to this as the Old World Order and it tends to create lots of negative behaviours.
The growth of computing capacity and deep-learning algorithms will threaten many traditional white collar roles in Asset Management. We are to some extent already cyborgs, plugged into technology on a daily basis. Actually, if you apply Moore's Law and look at other industries then it only takes a relatively small shift in technology and arguably a larger shift in culture to make vast numbers of our industry superfluous. The technology is inevitable; the culture is generational. That subjective fallible organic part of the value chain will increasingly find fewer ways to demonstrate economic value. So fund management needs to evolve quick and learn how to use Fintech efficiently or Fintech will cut out the middleman altogether and go straight to the end customer. This is what I mean by the New Fund Order. This is why I wrote the book.
2. If you could do another job for just one day, what would it be?
Writing allows me to be creative. I used to be a struggling amateur painter, so possibly a tattoo artist or a professional historic race driver. Cliche I know.
3. Disruption is always on the tip of everyone’s tongue. In your opinion, what is going to be the ultimate game-changer for the finance industry?
It's way too easy to say Fintech, like King Kong, looming over the City, all chest-beating and no bananas. Digital has become asset management speak to a large extent. I hear many big firms throw in a sprinkling of 'dynamic', 'digital hub' and 'Fintech strategy' messages but really it's more PR than progress. A bit of a unicorn. The large firms simply want to control the rate of change and be seen to be progressive. It's more marketing than meaningful.
However just look at Finsbury Square in London, where traditional wealth firms are already being edged out as big tech firms move in. Old Street migrates into Shoreditch, into Moorgate, into Gresham and Threadneedle. It's happening. Real disruption is coming from smaller start-ups and the question then is whom snaps up the innovators. The group missing out in the opportunity are boutique asset firms, whom are usually already capital and legacy light and thus would benefit most by engaging Fintechs that improve operational efficiency. ETF evolution, blockchain and Fintechs are the digital trinity.
4. What's your favourite thing about Berlin?
Wurst! Seriously, it's a cool, edgy city, in part due to a troubled past. I have been to Berlin a few times and I just like the cool mixture of old and new. It's not ostentatious like W1 London. The holocaust memorial around the Reichstag is powerful. I really want to get to know the art, music, beatnik culture and Fintech community better.
5. What are you most looking forward to at Fund Forum 2016?
Conversations and networking, changing opinions and having my own views changed, the unexpected surprises...
JB Beckett will be appearing in the FutureFinance Forum and the Investor Insight Hub at FundForum International, taking place in Berlin, 6-8 June 2016.