Ten challenges facing global asset managers
By Mark Battersby, 6 Jan 16
In the latest in a series of viewpoints from prominent industry figures, Nigel Watson, sales director of VAM Funds, sets out what he sees as the key challenges and opportunities for global asset managers in 2016 and beyond.
Managing expectations in a lower return/higher risk world
Income and capital growth are in relative short supply these days and asset managers need to be careful that investors’ expectations are not based on assumptions that perhaps do not apply to today’s investment environment and economic cycle.
Asset managers’ investment strategies are usually designed as long-term investments and it’s incumbent on asset managers to work with advisers to ensure investors are aware of this and do not have unrealistic expectations.
Part of the message here is also about looking to the private client philosophy of wealth preservation. There is a balance between pursuing growth and managing exposure to downside risk.
Multi-asset funds are an ideal way of achieving this in ready-constructed portfolios, while funds that use hedging to manage downside risk, as we do in the VAM Focused Global Equity Fund, are becoming more popular and mainstream.
Tags: Nigel Watson | UCITS | VAM
