Prakash Mehta Quoted in Regulatory Fundamentals Group Newsletter on Challenges for Fund Managers
Akin Gump investment management practice co-head Prakash Mehta has been quoted in the Regulatory Fundamentals Group’s RFG Weekly Roundup in the article “The Biggest Challenges Managers Face Today,” looking at some of the problems confronting fund managers.
Mehta said he sees two issues. First, is the growth of index funds. “Like all so-called ‘active’ managers,” he said, alternative fund managers are being forced more than ever “to justify their performance in comparison to low-cost, ‘automatic’ options,” giving them little choice “but to create and capitalize on differentiated strategies, talented professionals and hard work.”
Additionally, Mehta said succession is just as important. “Striking the right balance between continuity and change is the key to survival, in an increasingly competitive investment world,” he noted. “Dealing not only with the economic but also with the emotional elements of such a profound transition is something managers should and do have top of mind.”