BT issue 16 VF - Flipbook - Page 52
ISSUE 16
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THE EVOLUTION OF INVESTMENT
MANAGEMENT
Written by Samantha Jones, NPML Associate Director, Head of Investment Services
M
ultiple forces are currently at play which are
reshaping the way investment managers must
operate. The ever-changing macro-economic
landscape, coupled with advances in technology,
increasing regulatory pressures and growing client
expectations, mean that investment managers must
continue to evolve and enhance their capabilities.
Additionally, the world is simultaneously trying to adapt
to new ways of functioning after the global pandemic.
Therefore we find ourselves in a situation where change
and uncertainty seem to be the only constants.
After a decade-long bull market, the investment
landscape has undergone fundamental change. The
world emerged from Covid-19 in 2022 and has since
suffered an unprecedented series of interconnected
and macro-economic blows, leading to one of the most
unstable investment backdrops in decades. A return
to the period of relative pre-pandemic calm seems
unlikely at this point and the ever-increasing drivers of
long-term change mean that the exit from the current
period of volatility will take us into an altered world.
When faced with a highly unpredictable investment
outlook, investment managers must adapt accordingly.
Investment strategies that worked before will not
necessarily work now and therefore require constant
review. The traditional paradigm of investment
management was far more one-dimensional and
investment strategies were able to be fairly rigid and
yet still successful. There was also a certain level of
opaqueness when it came to the charging of fees. The
new paradigm is characterised by a multi-product,
multi- dimensional approach where flexibility is key. The
modern investor also demands far more transparency.
A fast-changing world means it is paramount to
embrace an active and flexible investment approach
which considers multiple risk scenarios. This is the
underpinning ethos of NPML’s investment approach.
We have been running investment strategies since 2004
and have successfully navigated through several market
downturns during that time, including most notably the
financial crisis of 2008. The breadth of experience in
our investment committee means we have a wealth of
expertise feeding into our investment decisions.
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