Session recording

Sara Rejal, Michael Sommers: Views from the consultants: manager reviews, diversification and new ideas

Views from the consultants: manager reviews, diversification and new ideas

The US Federal Reserve’s pivot to a liquidity-induced market environment over the past few years has not been conducive for many strategies and managers. The period of subdued volatility followed by COVID-19 caught many systematic and discretionary managers off guard. What strategies outperformed and where is extra due diligence required?

Speakers:
Sara Rejal, global head of liquid diversifying strategies, Willis Towers Watson
Michael Sommers, principal consultant, Frontier Advisors
Moderator: Laurence Parker-Brown, institutional content producer, Conexus Financial

Key Takeaways

  • Investors need to build an absolute returns strategy that suits their thinking about portfolio construction; this feeds into their willingness to accept stable or asymmetric returns streams and the conviction that they are willing to delegate to the manager.
  • The recent COVID market sell down in March has resulted in many investors re-evaluating their investment time horizon and whether tail hedging is appropriate.
  • To build a successful partnership with an asset manager, investors need to consider the culture fit – particularly when due diligence is restricted due to travel restrictions.

Poll results

ESG is important to my fund and I would like to see it feature prominently within liquid macro strategies…

  • Strongly agree
  • Slightly agree
  • Neutral
  • Slightly disagree
  • Strongly disagree