The current volatility of investment markets will see the skills and corporate stability of investment managers become even more important, according to Tyndall managing director Brett Himbury.
Over the last four years, investors have experienced extraordinary times in investment markets. As a result of this buoyant environment, Himbury said there has been less focus on corporate strength of businesses.
“What we’re seeing in financial services industry is an increased prevalence of corporate failures,” he said.
Investors will now place even more importance on not only assessing the skills of an investment manager but also their corporate strength and sustainability, he said.
“They need to make sure they can continue to invest in the people and in the systems to ensure they clearly have a sustainable business that will withstand what is otherwise going to be a pretty tough environment,” Himbury said.
Platypus Asset Management portfolio manager Simon Bonouvrie said some investors will look at this volatile period in the market as an opportunity to pursue high conviction managers.
“We’ve seen just in the last three months about $400 million dollars of inflows into our products,” he said.
“There are some retail and institutional investors out there that are looking at this downturn in the market as a period to position themselves in the high conviction manager for any upside that may result thereafter.”
