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place into the area where your after-tax investment skills are important. There aren't that many managers that have honed those kinds of skills, so those are the two big challenges for the investment managers.
I think that in the future we're going to see, in combination with that, a much higher business risk. Chris touched on the investment risks, but there is also legal liability, the targeting of our industry by attorneys. And the regulators are targeting our industry and doing lots of things that may inhibit us from the normal things that you might want to be able to accomplish or have been able to accomplish in the past.
P&I: Within the U.S., in which areas of investment management should a firm wishing to grow focus? Where would you - if you were running an investment management firm that was successful but wanted to keep growing - put your resources, what pools of assets would you go after?
MR. PEYTON: I would look at the strengths of the firm. One product area that probably no one has paid much attention to is charitable remainder trusts. There's a recent IRS ruling that allows one to commingle those trusts and, therefore, run them in a more cost-effective manner from the investment standpoint. Certainly that's a new market for many managers.
Another area that's not often talked about are the 457 and 403(b) funds that are traditionally run by insurance companies and also include an insurance cost in running those funds. While there are some specific legal conditions attached to those plans, they could now be run more like 401(k) plans. That creates a market for managers.
P&I: If you were a top guy in a large firm with major resources, and many different product lines, and you had to choose one or two on which to concentrate, which areas would you go after? Would it be one of these or is there something else that you see that would really pay off?
MR. PEYTON: Those are more or less ancillary avenues or areas. I would continue to target the defined benefit area and, of course, I would target very heavily the defined contribution area. I think the baby boomers are growing up and they're starting to save. I mean it's a bull market in saving; we'd like to turn it into a bull market in investing.
MR. EAGER: There's probably no single answer. It depends a lot, as Ron said, on the strengths and the character and the nature of the firm. For most people, just increasing the share of the market they're in is probably the easiest and best solution. So few people have any significant market share. That's probably the starting place, examine just how much capacity there is, how much demand there might be for products you offer in the existing markets.
I would look at markets where servicing is key, communication is key and stress that part of my business.
MR. SCHWARTZ: Picking up on David's themes, it's critical for a lot of money management firms to enhance their channels of distribution. A lot of the similar products they have in place can service, with some minimal alteration or restructuring, a variety of marketplaces they have not tapped into. But it's not the investment product that's critical. It is the servicing issue that seems to be at the forefront, effectively penetrating those markets.
That stated, in terms of some areas to focus on, I certainly would continue focusing on the defined benefit and defined contribution areas. But as a way of differentiating myself, servicing the high-net-worth marketplace appears to be an area that you have a natural flow from a number of your existing corporate pension plans and trusts.
MS. DEBATIN: Smaller firms can continue to grow if they're very focused in their target market, the market that they're well-known in and they're trusted and there's a competence level. The problem is that many of the products have become somewhat of a commodity and, therefore, fees will go down and one has to look for those areas where there's a chance for higher fees.
In the very large firms I think