Quality of company CEO crucial to success
The quality of a company's chief executive is a key factor in its overall success rate and should be carefully considered as part of an investor's decision-making processes, according to Quay Global Investors.
Track record, response to challenges, leadership skills, and risk analysis practices were measurements which investors could use to determine the potential of a chief executive.
Quay Global Investors principal and joint managing director, Chris Bedingfield, said: "A good CEO is key to a good business, so it's important to understand what makes a good one".
"The sector outlook, market environment or demographics can make a company seem a very attractive investment proposition, but the CEO can make all the difference to its ultimate success or failure."
Bedingfield suggested investors look at the performance of particular companies they would consider for investment, by assessing any changes since the appointment of its chief executive.
"Poor business and share price performance is always a warning sign, but if things have improved since the CEO took over, this clearly shows good leadership and ability," he said.
"If out-performance has continued in both strong and weak markets, this is a very positive signal.
"Making a judgement on a CEO's track record… provides an insight into future performance, and should be an important consideration for all investors."
Recommended for you
There is one specific risk that is a significantly higher concern for financial services directors compared to companies overall and is impacting their risk appetite, according to the AICD.
Global fund managers are shunning bonds, with the asset class seeing the largest drop in allocations in more than 20 years.
Australian Ethical has seen its funds under management reach $10 billion, driven by organic customer growth and superannuation contributions.
Financial advisers will have access to private equity investments run by WTW for the first time as it launches a pooled fund to provide savers with access to traditionally institutional assets.
