Posts Tagged “Fund Selection”

Spotlight Series: Anne Richards, CIO, Aberdeen Asset Management at FundForum International 2010

July 26, 2020

Anne Richards, CIO, ABERDEEN ASSET MANAGEMENT participated in a panel debate on new asset allocation models for fund selectors at FundForum International 2010 with fellow CIO panellists Rick Lacaille, STATE STREET GLOBAL ADVISORS and  Christian Dargnat, BNP PARIBAS INVESTMENT PARTNERS and moderated by  Amin Rajan, CEO, CREATE-RESEARCH.

In an interview for the Spotlight Series, Anne discussed the double-edged sword that is volatility.  Government bonds have responded well but the Equities Market, with renewed fears about Greece, has experienced more difficulties.  Even in this market, there is more optimism (however cautious) than 12 months ago.

The real growth opportunities can be seen in Asia and Emerging Market economies where the fiscal situation is much better than most of the domestic markets.  Interest is growing in both Emerging Market Debt and Asian Fixed Income.

For the end investor, the key challenge is to responsibly inform them so they understand that volatility is a feature of all investment.  If they have chosen the correct strategy, a little volatility shouldn’t be an issue.  We must avoid the knee-jerk reactions of Q4 2008 (after Lehman’s), when investors panicked, sold out at the bottom of the market and then couldn’t benefit from market improvements in 2009.

Fund Selection and the Art of Communication

June 9, 2020

An article by Niklas Tell, Tell Media Group.

Niklas Tell, will be speaking at FundForum International 2010 (28 June - 2 July) in Monaco

Do you think fund- and manager selection is as much about understanding people and their choices – past and present as well as future choices – as it is about strict financial research? I do and that is why I believe that communication is such a crucial factor for fund groups to get right.

The importance of communication is one of the things highlighted in our latest research on the Nordic fund selection market. Some 62 percent of respondents to our survey say they think high quality investment writers (i.e. investment writers producing high quality Request for Proposals (RFPs)) are either important or very important. One selector highlights “Short, precise but still thorough answers in RFPs” as one of the three most important topics right now.

The importance of communication is also reflected in the answers to a question on the importance of local presence. Most say it is not important, reflecting the fact that fund selectors can communicate effectively with fund companies anyway. But, local presence is important for those selectors who are looking for new managers to unit linked platforms and other retail focused vehicles. There it comes down to the ability to engage and communicate with the end client.

Conclusion? You cannot satisfy everyone, but I am sure you can satisfy most by having a structured and solid communication strategy. In essence it is about making sure that company history, strategy and in-house capabilities match the overall market- and communication strategy. Too many company profiles and fund presentations are too similar today. Or as recently stated by Seth Godin;

“Most people work hard to find artful ways to say very little…..  why not work harder to think of something remarkable or important to say in the first place?”

Snapshot of other findings in our Nordic fund selection research:

  • A majority of selectors in our survey are focusing only on fund- and manager selection, while some 46 % also do asset allocation.
  • A clear majority of selectors in the Nordic region think of their profession in terms of finding alpha, rather than finding the right beta.
  • Some 69 percent of selectors spend more than half of their time on qualitative analysis and of those 15 percent spend more than 75 percent of their time on this.
  • Thanks to an early mover advantage and strong local presence Morningstar have attracted most clients among the selectors in this survey. Other favoured services are Bloomberg and Mercer (GIMD).

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About Niklas Tell, Head of Research, TELL MEDIA GROUP.

Niklas Tell is Partner and Head of Research for Tell Media Group, the Swedish based research and publishing company.  Follow his blog at www.fundselection.org/blog.

The complete findings from this research, which is based a survey compiled by Tell Media Group, will be published in the Nordic Fund Selection Journal, which will be distributed at the FundForum International 2010 in Monaco. It will also serve as input for a panel debate with Nordic fund selectors moderated by Niklas at the conference on June 29 at 4.30pm.



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