In a statement, he said the very large growth in the number of self-managed super fund (SMSF) investors is in part due to the fact that these investors have, by and large, lost faith in the finance industry.
He further called on investment managers to re-evaluate the way they operate.
“Just as the advice industry has had to change its policies and practices to rebuild the trust of Australian investors, so too investment managers must look at how they manage their clients’ money and understand that they are only temporary caretakers of these funds and that they can make a huge difference to their clients’ financial wellbeing,” Mr Pohl stated.
The former managing director of Hyperion Asset Management has recently launched a new fund - EC Pohl & Co Mid-Market Opportunities Fund - which is built around aligning the aims of managers with their clients.
“Our incentive structures have been developed so that employees are remunerated as owners and focused as investors,” Mr Pohl said.
The fund will primarily invest in stocks outside the ASX Top 50 and will aim to focus on absolute as opposed to relative returns.
Mr Pohl believes this will offer a more flexible investment strategy than that which has traditionally been on offer to clients.
“What I have seen in the past is that the investment process can become too rigid as the manager strives to ensure the fund remains within certain parameters. Manager skill and the identification of exceptional investment opportunities therefore become secondary and may not be adequately reflected in the portfolio construction process,” Mr Pohl said.
“We aim to empower our investment team to use their skill in assessing investment opportunities and the relevant risks, rather than relying on indices and predefined structures to determine outcomes,” he added.
The EC Pohl & Co Mid-Market Opportunities Fund has been operational since July 3 and is available to wholesale investors with a minimum of $20,000 to invest.
