TPA requires an evolution of the business and services provided by asset managers, investment consultants and analytic providers to align with the objective of asset owners, and bridge the divide created by CAPM and the principal-agent problem.
Delighted to be speaking at the FactSet Focus conference next week where we have all these stakeholders at the same discussion table for frank discussions on –
What is the real problem TPA solves ? (Hint – it’s not having a portfolio look-through factor exposure, or breaking down silos, or doing a DAA factor overlay !)
Why did TPA arise out of the asset owner community at APG, CPPIB and other funds back in 2001 and not from academics, asset managers, consultants, investment banks or alternative managers which have long been the most innovative in furthering portfolio theory ?
Why the current public discussions of integrating public and private assets or creating a total portfolio view are just the beginning of TPA, and not the actual solution ?
…. and much more
Join me at FactSet Focus for this interesting discussion.