Purposeful Capitalism

In April 2017, the CFA Institute published a white paper entitled "Future State of the Investment Profession" that examines what they call purposeful capitalism.

What is Purposeful Capitalism?

In the paper, the writers examine four potential directions for the industry (P.5):

• Fintech Disruption:  New technologies promote new business models; disruption and creative destruction are endemic; challengers do better than incumbents; major disruptions to the world of work;
• Parallel Worlds: Different segments - by geography, generation and social group - engage in society differently; a higher baseline for financial services participation with wider dispersion; product preferences for personalization, simplicity and speed;
• Lower for Longer: New normal low interest rates and returns become embedded for the foreseeable future (5-10 years), accentuated by lower levels of global growth and higher levels of political instability;
• Purposeful Capitalism: Capitalism's way of working evolves; the investment industry raises its game with more professional, ethical, and client-centric organizations acting in aligned-to-purpose, lower-cost, and efficient ways.

While Bantam was formed before we saw this white paper, the idea of purposeful capitalism is in line with our vision.  Indeed, some of the major elements identified by the CFA authors could have been taken from our playbook, including (P.5):

• Firms and investment organizations integrate their wider purpose alongside their profit motivations;
• There is an increased attention to fiduciary responsibility in investment with better alignment;
• Fierce competition for leadership talent among investment organizations; diversity and culture are draws;
• Investment providers need to have a "clean license to operate" including ESG principles.

We believe we are in the forefront of this movement, which provides us with a significant competitive advantage both for human capital and winning business.  Many investment firms make impact investments.  Bantam is an impact investment.

Bantam Financial Planning Services

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