{"id":22801,"date":"2007-09-30T16:58:00","date_gmt":"2007-09-30T16:58:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=574"},"modified":"2007-09-30T16:58:00","modified_gmt":"2007-09-30T16:58:00","slug":"las-tacticas-de-los-gestores-para-gustos-colores","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/las-tacticas-de-los-gestores-para-gustos-colores\/","title":{"rendered":"Managers\u2019 tactics: each to their own."},"content":{"rendered":"
I read an article in today\u2019s *Expansi\u00f3n* by S. P\u00e9rez entitled The tactics of fund managers<\/a>, on which I simply must share a few thoughts with you all.<\/div>\n
\n
We soon came across several pearls<\/span> such as this quote from Alberto Espelos\u00edn, Head of Analysis at Ibercaja Gesti\u00f3n:<\/p>\n

\u201cLet\u2019s put things into perspective. The German stock market is up 18% for the year,\"\"<\/a> Spain, the 3%, the Bovespa (the benchmark index of the Brazilian stock exchange), the 30%\u2026I don't know what crisis there is<\/span>\u201d<\/p><\/blockquote>\n

Obviously, there can be no crisis for those who see it as a decline in their success fees or success fees<\/span>. As long as their clients are generating positive returns that secure their profits, what else is there to worry about? In fact, the relationship Financo\/Invers\u00f3pata<\/a> is based solely on satisfying everyone\u2019s insatiable appetite day by day with bread for today, without the slightest concern for tomorrow\u2019s hunger.<\/div>\n

What\u2019s more, Gustavo Trillo, Head of Management at JPMorgan Asset Management Spain and Portugal, acknowledges that:<\/p>\n

\u201cOur investment strategy has been temporarily disrupted. Before the summer, we were inclined to maintain equity holdings in our portfolios due to the favourable economic climate: the relative slowdown in the United States was offset by improved growth in the rest of the world. We felt that equities were the best risk-adjusted asset. With the crisis, stock market returns have fallen.\u201d.<\/p><\/blockquote>\n

I can't believe what I'm reading! Could it really be that a director of management at an organisation\"\"<\/a> Will leading firms offer their clients more than just equities and the associated fees? Will they be able to offer their clients investment alternatives where their operating income per client plummets in favour of a new asset allocation,<\/span> that can safeguard the well-being of their portfolios in an environment as challenging as the current one? Will we finally see a fund manager advising investors to underweight equities in favour of the current opportunities in fixed income and alternative investments? I continue reading the article, gripped by Mr Trillo\u2019s previous paragraph, much like someone eagerly reading the d\u00e9nouement of a thriller with a happy ending.<\/p>\n

But here are the remarks from the newly appointed Head of Management at JPMorgan Asset Management Spain. When asked whether the credit crisis will have a negative impact on equity fundamentals, he replies without a hint of hesitation:<\/p>\n

\u201cIt doesn\u2019t have to be irreversible.\u201d \u201cIt will be negative, but temporary.\u201d Trillo highlights the stance adopted by central banks, particularly the Fed, in favour of economic growth. There is a new scenario, says Trillo, and it is positive for equities. How so? \u00abWhen the Fed starts cutting rates\u2014provided it\u2019s not because of an economic recession\u2014the stock market performs well for twelve months. That\u2019s why now is the time to reposition ourselves to increase our exposure to equities and focus on those markets that are likely to perform best.\u201d<\/p><\/blockquote>\n

Spectacular, the show must go on<\/span>. The worst thing is that when investors are told what they want to hear, they tend to believe it hook, line and sinker. If the speaker is also wearing a smart tie and works for a prestigious financial institution, their words are taken as gospel.<\/p>\n

But it\u2019s not all going to be pearls <\/span>In this article, we also come across statements which, whilst obvious, are by no means insignificant, such as the comments by Nicol\u00e1s Llan\u00e1s, Skandia\u2019s head of investment in Spain: \u00abThe crux of the matter is that we must distinguish between the sectors most affected by the credit crisis and the rest.\u00bb referring to equities. And as for fixed income: \u00abThe only way to protect yourself is by adopting a very conservative strategy, focusing on sovereign debt and investment-grade corporate bonds<\/span>. \u00bbTo try and boost returns a little, you could round out the portfolio with some equities.\u2019 As I said, it goes without saying, but in our view it\u2019s entirely sensible and reasonable. In short, a breath of fresh air amidst all this pearl<\/span> although, unfortunately, they are all lumped together under the generic terms of managers, analysts, specialists, etc\u2026<\/p>\n

I would like to make it clear that we are not specifically advising against investing in the stock market, but rather criticising attitudes that we consider, at the very least, erratic and not sufficiently focused on the client\u2019s best interests, with attitudes that bread for today, more wood, or the show must go on<\/span>. And what is best for each investor and their family is comprehensive advice that goes far beyond the basics.<\/div>","protected":false},"excerpt":{"rendered":"

Leo en el Expansi\u00f3n de hoy el art\u00edculo firmado por S. P\u00e9rez con el t\u00edtulo Las t\u00e1cticas de los gestores, en el que no puedo mas que compartir alguna reflexi\u00f3n con todos vosotros. En seguida encontramos varias perlas como por ejemplo la cita de Alberto Espelos\u00edn, director de an\u00e1lisis de Ibercaja Gesti\u00f3n: \u201cHay que poner […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-22801","post","type-post","status-publish","format-standard","hentry","category-sin-categorizar"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/22801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=22801"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/22801\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=22801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=22801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=22801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}