Yesterday, in part one of this series, we discussed the importance of conducting due diligence on the strategy and process your investment manager. Apart from the initial investigative work, it also helps to know whether the manager is doing something genuinely different from others. After all, if your fund manager is not doing anything different to other managers (and this is in reality very, very common) there is little reason to expect a result that is anything other than average over time.
Unfortunately, the average return over time and the profile of this return, usually leaves a lot to be desired with many managers making money slowly when times are good and then losing it quickly when things get rough. We don’t believe investors need or want to rely upon good market returns for them to achieve their objectives and hence we think providing an offer that is anything but ‘average’ is a highly desirable offering which is much better suited to the needs of most investors.