Q: What’s the biggest change you’ve seen in the industry since you joined?
I joined the industry 30 years ago, and I’ve seen extensive change. One of the biggest is technological innovation – there was no email or internet when I first started working! The way we analyse, trade and consume information has altered markedly.
Automation and digital platforms, plus the increasing use of big data and AI have revolutionised investment strategies and risk management, allowing for more personalised, faster portfolio management. Perhaps one of the most significant changes has been the greater focus on sustainability and impact.
Charity clients have higher expectations of responsible and sustainable investing, and the demand for greater transparency around voting policies, practices and engagement has grown considerably. This is a demonstrable shift away from restricting one or two sectors on ethical grounds towards a fully embedded responsible and sustainable approach.
Q: What is the investment topic most often brought up by clients/investors?
Geopolitical events such as Brexit, trade wars and the rise of populism have introduced greater uncertainty into financial markets. There has been a growing focus on what a shift away from globalisation means for multinational companies, with highly integrated supply chains and how this should be factored into investment decisions.
Clients are keen to understand how managers assess these risks when constructing portfolios, both in terms of long-term strategy and shorter-term tactical asset allocation. This has played out through a notable preference for owning gold over fixed income as a hedge against uncertainty. There has also been a shift towards alternative investments over the past three decades to diversify and reduce risk in volatile markets.
Read the rest of this article in the March issue of Portfolio Adviser magazine