Age-tailored approach to equity needed, says fund manager
Fund managers must adopt a more risk averse approach to managing equity as the population ages, a fund manager believes.
Fully-invested strategies suitable for younger investors who can ride out cycles are often "fraught with danger" for older investors, according to Insync Funds Management's chief investment officer Monik Kotecha.
"Managing downside risk and minimising negative returns has to be at the core of any investment strategy," he said.
"This is in sharp contrast to a fully invested at all times, short-term, momentum-investing approach, driven by the cult of relative performance.
"There is a sharp disconnect between the end investor and many professional advisers, with the former needing absolute returns and the latter focused on relative returns."
Kotecha said an investor's ability to recover from loss diminishes as they age, which means age-tailored strategies are critically important.
AUTHOR
Staff Writer
Recommended for you
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
