Investing for Better: Harnessing the Four Driving Forces of Asset Management to Build a Wealthier and More Equitable World by Daniel Seiler

PART I
The Asset Management
Ecosystem

A Map of the Asset Management
Industry
For an adventurer in any field, a good map is an essential piece of
equipment. The first four chapters of this book offer a well-calibrated
description of the various players within the industry, how their managers
are incentivized, and what their objectives are—in a phrase, a crisp
overview of the asset management industry and the environment in which
the industry operates.
Before I proceed, I will say that creating a comprehensive map of the
global asset management industry is almost impossible, and creating one
that is simultaneously interesting and engaging for a reader is an
unqualified impossibility. First, there are differences from one jurisdiction
to another; even countries as geographically and historically tied as the
United Kingdom and France show significant differences due to diverging
legal traditions, for example. Second, there are differences in perspective
depending on what part of the industry to which one is exposed; the
industry appears very different to those who are operating in different
spheres and attempting to accomplish different tasks. Finally, the tendency
is for actors operating in one part of the capital markets ecosystem to
expand into other parts of the ecosystem, blurring boundaries and
definitions as they go.
The start of this chapter presents a simplified version of the ecosystem
that depicts each part as entirely separate, but as each division is explained,
you will soon see how much overlap and blurring of lines exists.
Although creating a high-resolution map of the capital markets
ecosystem that includes every situation, country, and nuance is impossible,

Investing for Better: Harnessing the Four Driving Forces of Asset Management to Build a Wealthier and More Equitable World by Daniel Seiler