London South East 00:01
You are listening to Investing Matters brought to you in association with London South East. This is the show that provides informative educational and entertaining content from the world of investing. We do not give advice, so please do your own research.
Peter Higgins 00:17
Hello, and welcome to the Investing Matters Podcast.
My name is Peter Higgins and today I have the huge privilege of speaking with Edward Marten, the former investment banker, entrepreneur and founder and CEO of QuotedData, which is involved in publishing research data, and events.
Welcome, Edward. How are you, sir?
Edward Marten 00:45
Hi, Peter, how you doing?
Peter Higgins 00:47
Very well, thank you.
Thank you so much for joining me on this Investing Matters podcast, I'm really looking forward to speaking with you about all things, research and investing.
So I want to jump straight in because I know you're very, very busy man, I would like to start our conversation with you sharing your roles, responsibilities, insights and learnings from your role, initially, as an independent financial adviser, followed by your over 10 years, involvement in investment banking at Cazenove, Collins Stewart, etc, please Sir?
Edward Marten 01:28
Well, when I left university, I got a job at an IFA firm, and it was quite a different world.
The IFA’s today now charge upfront fees and, and that sort of thing. And those days, it was commissioned, led, and very sales focused sort of business and industry and firm that I worked for, but you know, taught me a few things and, and it gave me a great opportunity to look at the whole world of finance a word that's used a lot.
But, you know, something I asked grads, you know, what do you want to do in finance. And you know, often when you leave university, you don't quite know what you want to do. And people think finance, but there's so many different elements to it.
And, you know, working in an IFA firm, I got the chance to look at mortgages, and insurance and, and investments and, and those sorts of things, looking at sort of the holistic picture of one's wealth and protection and lending requirements throughout their life, which I thought was fascinating.
But at the same time, it also, I discovered a love for investments, that was really what got me fired up.
And, you know, the idea of making money was far more exciting than paying out money to find insurance policies.
So, you know, my heart was, it was very much the investment side that I knew I needed to get into.
And, you know, at that stage, I was doing well at the firm, but I was keen to get into invest - well, I've thought about which elements and you know, I think I showed traits of more the sales side, rather than the buy side.
And I chose and worked out.
Again, it's confusing, you know, the word finance when you leave university and finding out where you your home is.
And you know, this then same with the term investment banking, which is again, it's such a big name, and there's so many different parts to investment banks, but I felt after meeting many people that it was the equity sales side and the investor relations side that really motivated me.
And yeah, I loved it.
Well, a great opportunity working at Cazenove and on the trading floor with incredible people, and listening to the noise and buzz of trading around you.
And that sort of thing was pretty special, I'm very lucky to have worked there. And it taught me a lot, you know, you meet incredible people, whether that's listed entrepreneurs, or maybe not so many entrepreneurs, but certainly business leaders and, and that was fascinating.
But you know, as time went on, I felt that there was an itch, you know, and with my investment banking, that I was keen to not just think year by year for a bonus, that you know, that I was keen to generate and create as keen to create something and build something and think a lot longer-term for myself, but also, you know, others and wanted to be in a position to help others. And I felt that if I was constantly at the mercy of a bonus at the end of the year, and you know, obviously generous salary as well.
But money wasn't just the key motivator for me, I needed a little bit more. And, you know, certainly going down that entrepreneurial route has delivered many parts of that it's very exciting to build something and see others thrive under it and meet so many people and you know, build on the platform that you're building out and build the people up.
So yeah, I get great enthusiasm out of that. And I think if I had done that route within an investment bank, it would have been slightly different and you know, not creating, you're creating value for others.
And that's nice, you know, I'm creating value for myself as well as others who work at the firm and other stakeholders, our clients and that's sort of thing. So, you know, I feel completely aligned and motivated by that.
Hopefully that answers your question.
Peter Higgins 06:55
It does. Thank you, Edward and I wanted to touch on that particular bit with regards to what led you to your entrepreneurial passion to set up, which was at that time in equity agency broker.
And please share with us a little bit about that start-up journey, and subsequent successful sale and to whom please?
Edward Marten 07:18
Yeah, I mean, it's a very small part of the story.
But it is an important one, I guess, because, again, there was a entrepreneur who was very good at what he did on the trading side.
And I was keen to learn from him how to set up a regulated business, and build up a regulated business and sell a regulated business. So, you know, it was a small part of that, but I was a part of that.
And, you know, that was enlightening. And it was one of the bits, I was keen.
When I left investment banking to set up a business, I didn't know quite what. And then I knew about investment banking and research.
And so I ended up helping this chap build up the business, we then both sold the business. And then I was very keen, I knew exactly, I spotted a niche in the research industry.
And that's why I set up QuotedData.
Peter Higgins 08:36
Fantastic, thank you ever so much.
I'm just going to say that, you know, that business was sold to SpareBank 1 Markets, which is one of the part of the second biggest savings alliance in Norway.
So that was a quite a significant sort of coup to get that sold to such a large agency, Edward.
So having done that bit of entrepreneurial and had your fix, some would say you went on then identified something that you felt was much needed.
And you found it essentially QuotedData in 2023.
What was that niche within the research side that you found that you saw that needed to be resolved?
Edward Marten 09:19
Well, it was clear that the retail market and smaller wealth managers were not getting the information they needed to manage money, there was demand for greater information.
And there was demand from corporates and listed funds to raise their profile.
And effectively, I've spent 10-11 years now building a firm, I set up the firm with James Carthew, my business partner who I used to broke to when I was at Cazenove, actually, so I was on the sell side, he was on the buy side, running a list of investment trusts of investment trusts and REITs, that sort of thing.
Anyways, so we start the business. And we were, you know, I presented to him this idea. And he agreed that this was an interesting idea.
And we've worked together since and we've been able to build up a book of incredible clients, you know, we've always looked for quality, maybe that's a differentiator between us and others.
But you know, we're looking to work with the best companies and support them on their communications and news coverage and research.
But we also provide news on every single company, as particularly strong in in REITs, and investment trusts, and we like to be independent.
Now, we collect our revenues from advertising and sponsor content, but we really need quite a rigorous external editing panel to review the content and ensure that it's as independent as possible, especially when we're coming to our sponsor content.
And then we distribute that. So that's the research, but then it's news and the data and the videos and all sorts of things that we do to really work with that niche, like I was talking about is that demand from investors to find out more about investment, which you will understand Peter and your firm, and there's a thirst out there and a growing thirst for that sort of information.
And part of the reason for being here today, but also a corporates, you know, there are corporates out there that that are willing to pay to get access to that sort of audience and investor groups and update their own shareholders and what they're doing and also, you know, potential shareholders.
So the firm's very much focused on that balance of capital and a need for capital.
Peter Higgins 12:25
Indeed, and one of the wonderful things that I appreciate about what you've done with QuotedData was that you've enabled investors to access your services for free and the content for free.
But I just need to ask that question. If you could just reiterate for me, how does QuotedData go about making money to then give the content out for free to investors?
Edward Marten 12:48
Yeah, so like I said, the advertising and the sponsor content is sort of the main drivers.
We also set up investor events, conferences, webinars, that sort of thing.
We help actually other investor shows with their shows as well driving delegates to the shows, but also clients and helping them.
And that helps again, you know, the research side, but a bit of the research side of the business is the key driver for the firm, we employ experienced analysts in the sectors that we cover.
We don't cover all equity sectors, we're very specialist, we want to be the number one in each.
Each section we cover listed funds is where we really do pick the best clients and where we've been driving the business.
And, you know, some of those corporates range from like the largest asset manager in the world, like the Blackrocks down to really interesting boutiques achieving real difference.
Peter Higgins 14:06
Okay Ed, so please, can you give us an overview of QuotedData, followed by its research solutions, offering some of the partners you work with? And the differentiated services you provide, please?
Edward Marten 14:22
Yeah, well, QuotedData provides investors with data, news research on listed funds, that's Investment Trusts, Investment Companies, REITs, holding companies.
And we differentiate because of the quality of our research and news coverage, we only work with companies that we believe are good. And you know, we're not here just to work with every client that approaches us.
And I think that's a key differentiator, we are offering a very holistic coverage to clients, we go a bit further than the maybe others do a making sure that content is repurposed and distributed and to the right sort of investors. So yeah, hopefully that answers that question.
Peter Higgins 15:34
Thank you ever so much for that Ed.
You've already mentioned your co-founder, James Carthew, who would have looked at the roster of people that you've got, and you've got, you've packed it with some outstanding individuals, how has QuotedData gone about attracting such standout quality of industry professionals to QuotedData?
Edward Marten 15:53
Good question, Peter. I mean, finding and retaining the quality staff is important.
My job is to spot individuals who can offer us and our readers an extra edge on while investing, it is difficult, you interview a lot of people and building up the culture of the firm.
There's a very diverse team that is open to swapping ideas and challenging ideas and creating interesting content and independent content for investors. So that is a very good question.
I think it's the fact that we are more independent than others, I think that's a key differentiator with us, we make that very clear to any client that we're taking on, that our content must be independent.
And, you know, we control the content, the content’s ours, we work with our analysts to make sure that they are independent, we have external editors that will check their work, and a lot of, of questionnaires and checklists to, to get to us to make sure that when something gets published, it's, you know, the highest quality.
So I think when you are applying for a firm like ours,that is very important.
If you are an analyst, you know, at the end of the day, we're driving like publishers and other sponsored research providers, revenues from listed companies, and also advertisers.
And I think, you know, that is something that, you know, if we focus on the better companies to cover, then you will get better analysts who want to work at your firm.
And, you know, hopefully they know that I'm going to support that drive for independence.
And I feel that that's one of my most important roles is to is the independent side of things, but also to find the right people to help us deliver on that rather than produce content that isn't up to scratch.
Peter Higgins 18:30
Indeed, love the way you've answered that, because it answers my other question, or the question that would have been about conflicts of interest in helping you staying into the quality side of it, and having the culture coming all the way down from yourself and James ensures that that conflicts don't happen.
So thank you for addressing that.
Edward Marten 18:49
No, that's all right.
And, you know, we also write in, in other publications like Citywire and things like that, I think that's important for our analysts to have those channels.
And, you know, we can highlight our independence and chat about different topics and, you know, keep our analysts on their toes, you know, and looking out and finding out what's in the industry.
And I think that will only make our research ever more enjoyable for investors.
Peter Higgins 19:19
Indeed, thank you ever so much for that, now Edward, in your view, how could investment research be improved even further and be made more accessible for all participants? Because what you're trying and driving at QuotedData?
Edward Marten 19:35
Well, I'm big at something that I'm going to group lots of research providers up this week actually getting everyone together and I've spoken to the Treasury about it and Rachel Kent.
This research review about is a code of conduct I think, you know, there should be code of conduct in the industry, I'm very keen that there is one, I'm very passionate about what we do.
And I know there's a lot of people have built firms who are passionate about what they do, whether that's research houses that derive their revenues from investors or sponsors, but either way, there just needs to be, I think, a sensible code of conduct.
So the readers, investors will have a very clear idea of where, where the conflicts are, we're very proud of the system that we've built, and how we manage conflicts, but you know, and our content provides investor with very valuable information.
And so we think the profile of the industry could be increased by, dare I say, increased regulatory regulation in this area, and while just a code of conduct that providers should provide, and, you know, hopefully the government can fund and support the research industry, but that might not come about, you know, it's a sensitive topic, especially with an election coming up.
But let's see, but I think, you know, we're very proud of what we do.
And I think that the code of conduct would be is needed in the industry, I think it really would improve things for the industry.
So I think, you know, obviously, I've talked about the need for independence and the code of conduct.
I think that's, that's important that that was really interesting that Rachel Kent brought up, but I haven't heard that been mentioned much recently. But I do hope that still on her agenda, I'm sure it is.
But in regards to distribution of it, you know, we are we I set the business up realising that certain number of investor groups such as IFAs, and private investors, smaller wealth managers aren't getting this research, we then need to do their due diligence to make investments or, or stay interested, you know, we'll be updating the investments that they have.
And so we've done everything we're going to, or you know, not all I'd say, we pick the best investor events, and we work with those providers, we often bring our clients down, we have a quote, a data of fund village, where we'll have our stand with our research there.
But also analysts will come down and meet investors and our clients will come down.
And so we've got a big show, I think you guys are going to be there anyway, Master Investor, who are a good outfit that a good balance of good quality investors and corporates coming down and we support them with that show.
So we do love working with third parties, you know, we're not, you know, we can't be brilliant at everything.
But you know, partnership and cooperation is important, you know, we do our own events.
But yeah, cor, they certainly put on a very good one.
And that's yeah, the 9th of March to do sign up for that once, if you're listening.
We also, you know, do advertising. We do podcasts such as this, we do a news on every listed fund.
We are, you know, we love the space.
Our analysts love what they do there. We do, edit, you know, periodicals, we have a weekly round-up monthly round up, our quarterly annual you can we do some thematic pieces and opinion pieces.
So, you know, we really do try and offer a whole range of things for investors, and it is all free. But it's, it's all there to serve for the investor journey and to give them what they need.
Peter Higgins 24:26
Yeah. Thank you for that.
And it's wonderful that you do that piece of work with other research firms to take to the Treasury to enhance what's available across the whole spectrum of the research industry.
So I really appreciate you doing that piece of work.
And you just said I look forward to seeing you at the Master Investor show on March 9 as well.
Now, given all the work that you guys have done at QuotedData, and can you just tell us some about some of the industry achievements that you guys have had, and any of the awards that you may have had previously as well? What are you looking to do going forward?
Edward Marten 24:57
Yeah I mean, we're not award chases.
And there are many awards out there for firms like ourselves, this group where the major money is, which is the asset managers.
So you'll see this asset manager on that asset manager winning this award or that award.
So that but we have won research awards, obviously and you know, Investment Week awards, and various others like that.
But interestingly, we are about to set up our own awards programme, so investors can vote on various categories that judge or judges will lay out.
And so that's going to be coming around Q3, but really the awards, the best award is looking at our readership stats and, you know, on our on our research and content going out and that's just building and building and building so we're getting really good traction on what we do.
Corporates want to be involved in that, investors are clearly loving it and that is the most rewarding aspect.
But of course occasionally holding up a trophy would be rather nice, is rather nice and would be nice if there were more, more awards around for producing results.
Peter Higgins 26:20
Also producing podcasts and interviews Ed….
Edward Marten 26:27
Yeah, thanks, actually, yeah, there's, you get invitations to speak at shows like yours Peter.
Peter Higgins 26:33
Absolutely. Now I'm going to take a little bit of a mini break here, if I may add and ask you about your own investing journey, you touched on the fact that you started off as an IFA.
So I want to start by asking you, when did you actually start investing yourself, you know, your own personal wealth at the time? And what was your initial strategy like? And how did that evolve over time?
Edward Marten 27:01
Yeah, I mean, I didn't have money out of just a bit of student debt, really, but I didn't really I didn't have money at all, but through earnings, and, you know, working hard and well have built up wealth, but also investing has been a something that I have liked to do, I tried to allocate a little bit of income every month to various pots so that, you know, if you get a pay rise or something like that, then, you know, you try and up the amount that you're putting in your savings, so you don't enjoy the highlife of extra earnings.
So you know, that has been a key discipline of mine is allocating cash to savings and investments.
But on the investing side, as this is the Investing Matters podcast, which I have started on the investment trust desk at Cazenove looking at discount Investment Trusts, so I couldn't help but get into value and spot opportunities when discounts were wide and looking at the mean reversion of discounts.
And like many clients were doing just to enhance their returns over time.
So I of course, did that.
But I must admit, focusing on that I missed the first part of the growth, massive allocation of capital to the growth markets.
And you know, I got into that late, but I certainly got into it and made significant returns, once I realised that I was a bit behind the curve on that one.
But yeah, so now look for, and, you know, I guess my investing style was a bit too short term at that stage in my life.
And I think, you know, focusing on the long term, like, for me, setting up a business as important, that was a long-term decision, investing should be long-term.
And therefore, you know, growth, and buying growth of value is a key thing for me.
But, you know, I'm very privileged, you know, I really love what I do, I meet incredible people just walking to lunch, bumped into one of the greatest investors, we chatted about his love for horse racing and various things.
But of course, we chat a little bit about work and his portfolio and how things are actually set to turn around for him.
And his fund, but, you know, meeting all these different people and seeing the spark in their eye, and what drives them and how they are making returns is rather wonderful.
So I do listen, I like meeting and finding out how people tick and you know, whether that's employees or investors, and I allocate resources, it's obviously given that we have expertise in the funds listed funds, in particular investment trusts, some companies REITs.
So there is a large proportion in those areas.
And, you know, I like the diversification and the performance that comes from them, you know, listed closed end funds are fantastic vehicles, far better structures than that open ended funds for so many asset classes.
And it's really interesting, and it's not such a big universe.
So you can really get to grips with the companies there. And that's why, you know, we have, yeah.
Peter Higgins 31:07
Brilliant, thank you for that reply.
Now, you didn't, I'll just try to tease out a little bit there and you mentioned diversification, which sort of sectors up do you find yourself predominantly in if there is one?
Or are you the sort of individual that likes to look at all of the arenas available to your investments?
Edward Marten 31:27
Well, there is a bit of a growth stance but you know, clearly when there is an area that I really don't know, huge amount about like tech or biotech or health care, you know, I do like allocating to my proxy to someone else ,i.e. a fund manager to manage those aspects of a portfolio and looking for those people who really are involved and motivated to drive returns.
I think, you know, that's, that's something that obviously, clearly a fund can do for you.
You know, you can't know everything and you really need to allocate those decision making to people who are better placed for it, in my view, so that's, that's certain, there's a bit of a trend there, I have some really interesting mandates the sort of more absolute return funds as they I think they don't like being labelled, like, whatever that the trend is, these funds are called.
But the multi-asset, asset manager type funds, there are some very good managers there, there's a lot of average managers out there as well.
But, you know, I like keeping in touch with what they think about the world, looking at people, always negative is always helpful to keep your feet on the ground, at the same time, listen to people who are positive, and just chewing that all over and understanding where we are in cycles and that sort of thing.
People with who are experts in certain fields, you know, I like to be slightly closer to them, and you know, more likely to invest in those sort of funds that, you know, if they do communicate well, to the market and inspire others, like they are offering something a bit different than that I would like to be involved with those sort of people.
So, yeah, I think those sort of individuals are quite inspiring and listening to their underlying portfolios is always interesting. And I'd say I'm overweight, those, you know, I like to think they overweigh excellence in quality.
You know, it's not always right.
You know, I think those people who proclaim that their investments and always talk about their wnners and things like that, you know, I'm less likely to listen to it, you know, time is short, as it is, and I like to hear where people have got it wrong.
So and can be very straight with you, I think, you know, the industry as a whole, or just, you know, could be a bit more open.
And, you know, communication is key.
And, you know, we talk with clients about this, you know, we will write about things that you get wrong.
And, you know, it's important to communicate to the investing market. And of course, companies that do that do get a better rating.
Peter Higgins 34:47
Agreed.
Now, I'm going to pose this question because yourself, James, the investment industry, and all investors have been asking for at least 12 months now it feels a bit much longer than that, about how can so many ostensively good companies be so out of favour?
So I suppose my question is, that you guys pose the quality of data is, is there any easy fix for investment companies and the discount problem they're facing and continue to face currently, Edward?
Edward Marten 35:25
Yeah there is a cost review occurring at the moment, which the government and the Treasury and the FCA are looking at.
So we hope that there'll be some more news coming through on that, I won't be too specific about that.
But you know, investment companies are, like you say they are, they are on a wide discount at the moment, they do show great opportunity, it would be wrong to assume that all of this is allocated to the cost disclosures issue at the moment.
But you know, it does make sense, you know, especially those alternative investment companies have done a wonderful job converting you know, shifting our transition from to greener resources of energy production, to starve them of capital just seems a bit odd to me.
And I hope that more people will support these companies and allow them to grow, and we need to give them the best chance to grow.
So I am so I think in that regard, I think, you know, things could be better for those companies.
And that's that's clear.
You seeing them a lot of them campaigning at the moment. And we know the chancellor has heard it, and the Treasury and the FCA sorry, hopefully are going to be delivering some positive news in that area shortly.
I think the UK as a whole is an interesting market is such incredible value at the moment is so oversold, I think on an average of seven times earnings. You look at the valuations of US companies, I just can't help but there should be a rethink on people's allocations to the U.S., if I ring around wealth managers, on average, they only have about the UK investment wealth manager, UK wealth managers we only have around 5% in the UK, which is in my whole career.
And times we'll never before have we had such a low weighting to the UK.
And I think, you know, the government could do something pretty special with the British ISA if that comes along or you know, just the fact that I one pays income tax on think that that money that gets put back into my pension, that there should be a constraint that should be, you know, allocated in proportion to UK companies, whether that's listed or not, but it should be you know, if I'm a taxpayer, I'm assuming that the tax is going to help the UK not going off to international companies, mainly US tech.
So, you know, I think that you know, the world stock markets has changed the UK isn't such a leading player, I think the government needs to have a rethink, I don't think they're wrong necessarily, or how it was set up before. It's just the world has changed.
There's so much so much wealth in very few companies, you know, investments, so many of our investments in the UK are tied up in large tech US stocks.
And I think that just suddenly think that your taxpayers money is going into support that I'm sorry, but that just needs a little bit of a rethink, as the markets are also weighted that way now, and the UK is, you know, clearly the institutions that are already run, I think, you know, there's not many institutions left in the UK and, and, you know, the wealth managers and also investors have fled the UK and, you know, that clearly retail is important, and that's why maybe retail is if people are turning their attention to retail, it's because there's lack of capital, to invest in the UK.
So you know, allowing that as it's clearly a positive thing, you know, something that I've been campaigning about, but, you know, this is happening, probably because the rest of the world has left the UK, so we, you know, we need, the government needs to do something to support and change that, and there are seriously impressive people working on that, and that, you know, you only have to open up the newspapers and, and LinkedIn and various news portals to see who those individuals are, but they are impressive.
And I do think and the hats off to those campaigners for getting out there and trying to create, you know, change the situation and improve things for investors, but also the UK. So coming back to your questions, yes, there are things that can be done. It can be quick fixes, and there is long-term aspects. And that's what we need to provide here in the UK. So hopefully that answers your question, Peter, in a rather long-winded way.
Peter Higgins 41:04
No it does.
Thank you very much Edward. I wanted to just ask a tiny little question in the middle of all of that, and you touched on it a little bit and asked me to expand on it to get your personal view, not necessarily QuotedDatas’ view as to what do you think was the trigger in 2023 for that herd like stampede, by private investors and institutions large and small, into that artificial intelligence and generative AI space last year, because everyone just seems to be heading into one direction, and away from ESG renewables and sustainable investments?
Edward Marten 41:42
I think it's, you know, it's clearly there's a herd mentality out there.
I think tech has driven such phenomenal growth in the stock markets over the last well over for a long time.
And people are, you know, we haven't fully seen the impacts of, of what AI can do.
I think it is a really interesting area, you know, but it is early.
And I think, you know, there will be corrections.
But you know, it's a niche area, and it's driving a lot of returns in the tech funds.
You know, the ESG thing, clearly there was a lot of capital allocated that area and you know, there was greenwashing occurring.
And, I think it just went there was too much capital allocating, and that and everyone who claimed to be ESG specialists.
So I think that just got ahead of itself.
There will be a time when I could say the same about AI.
But who knows, when that’s the time.
But you know, my advice would be just to make sure that things were diversified.
Don't allocate all your things, and yet put all your eggs into one basket.
But it is an interesting space AI, I do read a little bit about it.
Some of it goes over my head and thankfully, we have people who understand it better than I, I think it will change our world just like the internet did.
We will you know at what speed and how I've got an idea on how certain aspects of how, but we don't know fully, but it's yeah, it's an interesting space.
Peter Higgins 44:01
Thank you. I wanted to touch on now if I may, because one of the things I've noticed across the industry over the past 18 months or so are some significantly noteworthy fund managers retiring, others leaving the established firm to sell unique advice and boutique of management firms and others, basically just, you know, deciding they’ve had enough and the likes of Ben Whitmore, who was at Jupiter went to set up his own firm. I think it was John Bennett retired from Janus Henderson and a few others.
Is there a risk that the large investment industry firms don't really see the capital allocation coming back because of these new smaller firms growing and therefore taking some of that previous inflows of capital that they used to have?
Edward Marten 45:02
People leaving firms to set up new firms and people retiring is not a new trend.
Are you saying that there is an increased rate of this happening? I don't think there is.
Peter Higgins 45:20
I personally I feel like that it's accelerated somewhat.
Edward Marten 45:23
I think there's quite honestly consolidation in the industry, I would go and say, well, I mean, I don't have the data in front of me.
But there's a bit of consolidation in the industry. I think people have to be brave to set up their own firms, you've got the Woodford’s issue and compliance headaches of setting up firms.
I think so, I think people think twice now about set up their own firms. But in regards to retirement, that's always happened, I suspect COVID might have had an impact on some people's decision making.
They comfort from working home, and the politics of dragging people back to the office may have impacted largely on that.
But what is rather wonderful is how our industry, there are people who will work all the time that they have, and it is an interesting area that we are in, feel very lucky to be working in it.
And so maybe, you know, there could be a trend of people wanting that extra comfort in a smaller firm along that, but I can't really comment. I mean, there are individual cases, for sure those larger firms are getting larger.
There are governments and regulatory bodies to ensure sure that and that well-funded by larger asset managers, is my cynical thinking around that. But no, I think there is some sense around it as well.
Cost cutting is a major focus, especially in the UK, you know, and I think there really does need to be a shake up on that, I think things if we really get back to trying to create returns and value for money for investors, that would be a lot better.
So focusing on creating growth, I don't personally have a problem with performance fees, things like that to motivate people's success and drive people.
But again, I think America wins on this one, then focusing on wealth creation far more than maybe the UK market, which is more about cost cutting.
So, maybe there are fund managers out there and investors out there who just want to tie it and free themselves of this and want to create an environment that they return back to wealth creation, and in an environment that suits them.
So yeah, I haven't got the data. But yeah, I'll look into it after this call Peter.
Peter Higgins 48:03
Thank you very much.
Now, you mentioned just briefly there, takeovers, mergers and disposals appear to be the order of the day for many investment companies at the moment. What are your thoughts regarding the de- equitisation of the investment industry? And UK markets in general Edward?
Edward Marten 48:27
Well, it's very, I mean, mergers in the investment.
Firstly, the investment companies. I think it's great, you know, where there's some consolidation that's needed, you know, boards need to continuously always think about that.
But, you know, I think that that's part of a cycle.
I think, I don't see anything.
Yeah, there's I don't think there's much more to add than that.
Really, just trying to, you know, there will always be acquisitions, disposals, mergers, wind ups, yeah.
So I just think that just keeps things fresh. And, you know, all investment companies should be focused on making returns for their investors and, you know, making things are as sharp as they can be.
Peter Higgins 49:35
I think they've tried to combat at the moment, a very wide discount, since some of them are getting rid of certain parts of the businesses or merging, accelerating that going forward.
But I wanted to know, if I may, with regards to you personally, Edward, as to what aspects you've got, I think you touched on it a little bit already of the investment industry ready really piques your interest.
And also a little bit about the bits that you don't like about the industry at the moment, if you can be so bold?
Edward Marten 50:09
What I like about the industry, I love the fact that there are some incredible people that are driving great change in we are very privileged to be working in a sector of investments that can generate and drive growth around the world and in the UK, you know, with the right systems with that can accelerate, of course.
So that's very exciting to be watching what the government do, of course, there's going to be a change but there could be a change of, of government very shortly. But you know, I believe that shared on the other side of the fence as well.
So, you know, that remains to drive growth.
But yeah, I think there are lots of great things.
There's lots of great value out there at the moment. There's fantastic growth opportunities, it's harder to find those growth opportunities.
Obviously there's momentum trades that you know, of AI and things like that and tech, but, you know, a lot of the people the same people I'm talking to are, you know, looking at other aspects of the market, not just those so, I think it's it is exciting.
There's lots out there to be to be reaped, in regards to what I don’t like. I think it just to focus on Also the whole time gets a bit wearing.
Certainly also, you know, we are connecting a huge number of investors to companies.
And I think they appreciate the value that we offer, which is, which is great.
But I know the asset managers themselves, there's this increased focus, regulatory pressure on them, and to always focus on cost cost costs.
And I think that can mean that there is a less attention applied to creating value for investors, you know, growth returns.
And I think there is some fantastic talent out there, and they need to be rewarded for that.
But yeah, I'm sure if I had longer to think about that question. I would come up with a better answer, Peter.
But there are always things that rattle me every day, and things I find interesting every day and things that amaze me every day.
So I'm fortunate to have that, you know, my job in that, you know, I have that sort of roller coaster of emotions that I care about it and I'm privileged to have access to those sort of investors and moneymakers.
Peter Higgins 53:09
Thank you for that response. I've got two more questions here.
I'm going to try and wrap it up, as I’ve had you here for a little while. I appreciate your time is precious.
We spoke earlier about QuotedData as a platform being freely accessible for investors, which I think is absolutely fantastic, by the way, we've talked a little bit about tech and wanted to ask you, because obviously QuotedData were heavily involved in research content, and investment surfaces.
Are you in the team considering already started embracing AI and generative AI within the company?
Or is it something that you're not really considering going forward?
Edward Marten 53:48
No, I mean, we'd be silly not to keep you know, I've spoken to different people, I'm going to find out more this week, actually, when I've grouped together, industries sort of gets together, and we can chat about things.
But look, I mean, this is generative AI is here, and we've tested bits and bobs, it really doesn't it, it really isn't there at the moment.
And you know, we have thought about ideas to fund further research, we need to probably more in that space. But you know, I think with these technologies, certainly not going away, you know, you cannot tell every country and thoughts and stop doing AI. So it's here stay once it's here, it's here, you can really not invent it.
So it will happen, it will change what we do over the long run, certainly in the short run, it's not changing a thing, we don't use it in our processes, we test we have tested various systems, really is not the quality that we expect.
So we are quite a long way off, I believe that but we will review this, you know, we need to get stay on top of our game, we need to providing investors what they need.
And clients and the world of content creation and distribution is always changing.
I mean, it is exhausting the days we're always researching new bit of tech or you know, whether to it's mainly on the on the distribution side of the reporting side, but certainly it will also flood into content creation as well in the future.
But at the moment, you know, I sit down with analysts, I'm trying to get them to record their meetings so that at least they have a transcript rather than writing down their notes and things like that, and just dictating effectively what the guys think so that they can actually shift away to using their head a bit more in meetings and things like that, you know, we're still we work with talented individuals, but and trying to optimise some of their processes.
I imagined the route that we will be going with that. But to date, we're not. There aren't too many firms adopting it in our industry yet, but I'm sure many are listening and watching what's being done in other content areas and seeing how that could be applied.
Peter Higgins 56:38
Brilliant, I appreciate that reply, but now I've got a final question for you.
This is my final question that I like to ask certain individuals Edward so brace yourself, you're ready now for this?
Okay, you’re an excellent entrepreneur, I'm going to grant you complete autonomy and power over the investment industry. What changes would you make immediately? And why?
Edward Marten 57:06
Oh good question. I really don't know. Where's the start? There are so many little things to fix that I think that in regards to one thing…
Peter Higgins 57:27
You can have more than one. Changes.
Edward Marten 57:32
I think certainly think sorry to bring this up to governments again, but I certainly think and it was a case of listening to the Economic Secretary, and I heard a question fired at him.
And he I felt that there was there was a little bit of this is not my territory. It's really the Education Secretary's responsibility.
But I really wish that the Economic Secretary and the Education Minister could get together and create a framework and funding and support to educate children, people as a whole more in investments and understand the difference between saving and investments and the different routes and options.
You know, we talk about it like that, you know, we spent every waking hour thinking about it and working on it.
But, you know, I think there is a huge chunk of the world, but also the nation that really hasn't got a grasp of it.
And I think that could change.
And I think it'd be much better I travelled around the world to various investor conferences, and it's amazing how they aren't wrapped up in cotton wool, and their knowledge is far greater.
So I do think a little bit of freedom for people to maybe cut themselves and investing but not break something.
If you know what I mean, I think that people should be allowed to make mistakes, there shouldn't be so much cotton wool put about I think there is so much and with education and financial support from the government to educate people on investments and getting it into the curriculum as well. I think that would be really a wonderful thing.
And I think it's an obvious one that different government departments should be working towards, but I haven't seen a huge amount of change there, I'm afraid but that is the one thing I would like to see change. But you know, there are lots of things and that but that's the one I think I would like to respond with.
Peter Higgins 01:00:09
Brilliant. I love that response Edward.
Thank you ever so much, ladies and gents, thank you ever so much for listening to this Investing Matters Podcast. I was blessed to be able to speak today with Edward Marten, former IFA former investment banker, entrepreneur, founder and CEO of QuotedData. Edward, thank you ever so much for being on here with me today. Thank you.
Edward Marten 01:00:32
Thank you, Peter.
London South East 01:00:34
Thank you for taking the time to listen to Investing Matters. Be sure to check out the London South East website for free tools and info to research your next investment. You can also join in the conversation on our social media channels. And don't forget to subscribe to our YouTube channel for more content, including our CEO interviews. Catch you next time.
