Monaco, June 22, 2009 - Andy Smith, Managing Director and head of J. Robert Scott's London office, attended the annual European asset management summit in Monaco this year. He comments:

"In a critical year for the industry, a much greater level of soul-searching within the industry was in evidence at this year’s event than in the past. The event was attended by a number of leading industry figures including Mark McCombe of HSBC Global Asset Management, Jamie MacLeod of Skandia Investment Group, Martin Gilbert of Aberdeen Asset Management and Charlie Porter of Thames River Capital.

Key themes debated throughout the week included:

• Business models, M&A and the overall ‘value’ chain, with an increasing emphasis on the power of distribution
• Restoring investor confidence in the effectiveness of the asset management business model
• Product simplification, solutions/outcome-oriented product development and the improvement of customer service
• Local and international regulation and its potentially profound effects on the industry
• The increasing encroachment of ETFs and passive management on the active management industry

The event was fascinating in respect of the breadth of the issues up for debate, and the level of introspection given the challenges that have beset the financial services industry in recent years. However, the extent to which the industry is truly likely to change after some recovery in markets in recent weeks is a moot point. Will this be the period where asset management firms and distributors undergo significant change, reposition their business models within the industry and seek to reconnect with their customers, or will the ‘rising tide’ of global investment markets come in quickly enough to ‘float more boats’ and allow many firms to carry on again with business as usual? Time will tell, but Fund Forum gave a strong sense that the industry is as ripe as it has ever been for fundamental change."