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The Shift to New Investment Vehicles


October 4, 2012 - London

"The portfolio results, and at the end of the day, the success of the asset manager/client relationship, will depend on the set objective. The driver of that objective will be risk/return," say Frank Hausler, Chief Executive Officer, and Urs Schubiger, Chief Investment Officer of 1741 Asset Management Ltd.

Frank Hausler and Urs Schubiger from the leading Swiss quantitative asset manager 1741 Asset Management Ltd and attending the upcoming marcus evans Elite Summit 2012, in Montreux, Switzerland, 28 - 30 November, talk about investment strategies for private wealth managers.

- What strategies can you suggest for private wealth managers?

Frank Hausler: Deciding upon the appropriate strategy for your client requires a detailed understanding of their needs. After addressing various constraints, such as liquidity, tax and legacy issues, the desired risk/return profile is of fundamental importance. What is your client's portfolio objective?

Those investors seeking higher returns and in the position to tolerate larger, temporary deviations from their benchmark will have an increased appetite or ability for concentrated portfolios. For those investors seeking stable returns with fewer deviations from benchmark, a balanced and broader portfolio will be better suited.

The portfolio results, and at the end of the day, the success of the asset manager/client relationship, will depend on the set objective. The driver of that objective will be risk/return.

We also observe a clear trend towards Undertakings for Collective Investment in Transferable Securities (UCITS) strategies. This trend has arguably been fuelled by recent market events. However, the investors' appetite for alternative investments has not linearly decreased and many such strategies are not UCITS compliant. This situation results in a conundrum for the investor - how do they access the desired alternative strategy if it is not UCITS compliant? Are they willing to trade increased regulation and perceived safety of a UCITS compliant investment solution for a more suitable non-UCITS strategy?

Despite providing the investor with clear advantages, these structures are often more restrictive on the asset manager. We believe that new structures will evolve over time which will address the key concerns of investors on issues such as regulation and risk management and simultaneously provide the manager with the breadth he/she requires to implement their strategy successfully. Should these new structures be less well regulated than current UCITS vehicles, the onus will increase on the investor to ensure that they have completed the appropriate level of due diligence.

- How can risk be accessed? What research models are appropriate?

Urs Schubiger: In broad terms, an investor can access the skill-set of a quantitative or fundamental asset manager. 1741 Asset Management Ltd is a quantitative asset manager yet we believe strongly that quantitative and fundamental approaches are highly complementary and should, in fact be combined in an investor's portfolio. By including a fundamental manager, an investor can profit directly from a detailed balance sheet and macro analysis, and arguably more concentrated portfolios. By accessing a quantitative approach, an investor will profit from processing power and likely broader portfolios. A combination of these two methodologies will hopefully support the portfolio during challenging markets.

- What further advice can you give to private wealth managers?

Urs Schubiger: We would encourage investors to embrace their curiosity and challenge the status quo. There is no law which stipulates how a portfolio should look, there is only guidance. Of paramount importance for the portfolio will be a suitable reference point (well defined and relevant to the client), diversification and discipline.

Investors stand to gain by being less concerned about tracking their peers and more focused on inflation adjusted, absolute returns, and net of taxes. An appropriately constructed portfolio, staying true to clearly defined principles, can and should be innovative as it realises its objective.

About the Elite Summit 2012

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 28 - 30 November 2012. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed thought leaders in private wealth management and market leading asset and fund managers for a highly focused and interactive networking event. The Summit includes presentations on asset allocation trends, wealth transfer, streamlining tax efficiencies and manager selection strategies. For more information please send an email to info@marcusevanscy.com or visit the event website at www.elitesummit.com/FrankHauslerandUrsShubigerInterview.

The Investment Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.
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Please note that the Summit is a closed business event and the number of participants strictly limited.

About 1741 Asset Management AG

1741 Asset Management Ltd is one of Switzerland's leading quantitative asset managers and has developed numerous successful quantitative investment strategies. It combines independent, in-house research with the latest academic findings to develop new and improve existing investment strategies. 1741 Asset Management is a 100% subsidiary of Notenstein Private Bank Ltd. Both are part of the Raiffeisen Switzerland Group. www.1741am.

About marcus evans Summits

marcus evans Summits are high level business forums for the world's leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com.

- Twitter: www.twitter.com/meSummitsGlobal
- YouTube: www.youtube.com/user/MarcusEvansGroup
- SlideShare: www.slideshare.net/MarcusEvansSummits

Source: marcus evans Summits

Contact:

Maria Gregoriou
Journalist, marcus evans, Summits Division
Tel: +357 22 849 400
Email: press@marcusevanscy.com





Copyright 2012 ACN Newswire. All rights reserved.

ACN Newswire

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