Defying assumptions, Dan Chung, chief govt officer of Fred Alger Administration, rebuilt the funding workforce and, certainly, the complete cash administration agency after it misplaced 35 individuals within the assaults on the World Commerce Heart on Sept. 11, 2001.

CEO David Alger had perished within the North Tower, and Chung, who had simply turned 39, instantly grew to become the agency’s chief. Founder Fred Alger, David’s brother, was retired and dwelling in Switzerland.

“If you wish to speak about which companies had the most effective enterprise restoration after 9/11, I believe Alger can be among the many High 10 of any trade,” Chung says in an interview with ThinkAdvisor. “Within the funding world, I believe we’re No. 1.”    

Chung, who just lately acquired a 2023 ThinkAdvisor LUMINARIES award for neighborhood influence, discusses management classes he realized on the helm of the growth-investing boutique in addition to latest developments capitalized on, akin to actively managed ETFs.

Chung, now 61, who grew to become CEO in 2006 after his appointment as president three years earlier, brings up a couple of of his management “weaknesses,” as he calls them, and advises hiring proficient individuals to “complement” any shortcomings.

“I do know that I’m not a pure gross sales [and marketing] govt …,” he says. “Maybe if I had been [one] with a number of that have, as a substitute of the agency [managing assets of] $22 billion right this moment, we might be at $60 billion.”

Chung joined Alger in 1994, after 4 years as a lawyer. Earlier than taking on, he served as a senior analyst on the funding workforce, portfolio supervisor and head of know-how. 

Within the cellphone interview with Chung, who was talking from his workplace at Alger headquarters in New York, he notes his excessive hopes for synthetic intelligence, “a megatrend,” which, he says, will assist advisors “the place used appropriately.”

Listed below are excerpts from our dialog:

THINKADVISOR: When Fred Alger Administration misplaced 35 individuals on 9/11, amongst them David Alger, the agency’s chief, you instantly grew to become chief funding officer and head of the agency. What was the trade saying about Alger’s future?

There was numerous doubt on Wall Road whether or not we might survive. Most anticipated us to exit of enterprise. 

Most consultants and advisors put us on maintain or terminated us. They weren’t investing new cash with us for a number of years, watching whether or not we might survive. 

In 2006, you have been named CEO. What’s your greatest management success?

Rebuilding the funding workforce, producing funding efficiency, rebuilding the agency and in the end successful again shoppers.

We have been one of many hardest-hit companies [on 9/11] and, as a boutique, not one of many larger ones.

However if you wish to speak about which companies had the most effective enterprise restoration after 9/11, I believe Alger can be among the many High 10 of any trade. Within the funding world, l suppose we’re No. 1.

Have you ever made any management errors?

Not a mistake — however maybe if I had been a gross sales and advertising govt with a number of that have, as a substitute of the agency [managing assets of] $22 billion right this moment, we might be at $60 billion.  

What latest developments have you ever aggressively capitalized on?

We attempt to not observe developments for the sake of developments. We attempt to hearken to our shoppers, and after we see a requirement for one thing, we need to meet it.

For instance, beginning in 2020, we launched actively managed ETFs. That’s been giving buyers preferring the liquidity and tax effectivity of ETFs a method to put money into a number of of our methods that had been in mutual funds.

We’re additionally seeing curiosity amongst buyers in U.S. progress equities abroad, akin to in Europe and Asia. So we’ve been investing in these and employed two senior vice presidents to go enterprise growth.

What developments do you see on the horizon?

I and the remainder of the funding workforce are very centered on AI and the way it’s going to development for a lot of industries, services. 

We see AI as a megatrend that’s driving funding alternative on all ranges and in all sectors.

How will or not it’s utilized in enterprise?

AI could have functions each internally for companies to enhance their advertising and gross sales, and manufacturing and logistics effectivity.

It’s additionally going to create numerous alternative for corporations that present the know-how, whether or not it’s software program, {hardware} or knowledge analytics. 

We’re very within the AI development and who would be the suppliers of know-how and companies which are powered by AI, in addition to how it is going to be utilized and what corporations will profit from it.

How will AI profit monetary advisors?

It might actually assist advisors, the place used appropriately, in servicing shoppers and maintaining them higher knowledgeable and in serving to advisors change into extra environment friendly within the again workplace.

But it surely’s undoubtedly going to be a problem. The place you’re not capable of compete on a know-how foundation, you’ll be able to compete on a unique foundation, like customized service and understanding your shoppers. I don’t suppose AI can be up for that job for a very long time.

What management classes are you able to share?

Recognizing that having a tradition that rewards arduous work and efficiency, a meritocracy, is essential.  We let expertise rise by means of the ranks after they’re fairly younger.