Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Selector reveals most challenging situation for 2018

Selector reveals most challenging situation for 2018

As 2018 kicks off, how will fund selectors cope with the ever-evolving environment? If passives continue to dominate the market, how can fund selectors adapt?

In this edition of 'Selector Snapshot', one investment professional reveals his biggest challenges for the year ahead.

Selector: Jonathan Cohen

Company: Reyl & Cie

Passives and the increase in passive solutions is definitely a challenging situation for us. Meanwhile there are also many new thematics funds in the market, such as ‘millennials’ or ‘golden age’ funds.

For us, it’s all about changing the selection process, by that I mean adapting a little bit, although it’s definitely a challenging situation.

I would say that the number of providers is also quite a challenging situation for us. Due to our size we need to keep a close eye on the resources that we have as well as the amount that we invest in the selection process.

The way we cover the universe and source new opportunities is becoming increasingly complicated due to the number of other participants.

Market confidence

We are confident about the banking industry more from a credit point of view. You see a lot of banks that have improved their balance sheets and they are more solid, but that could always change in this challenging environment.

This was definitely a key driver of performance for 2017, as well as having avoided some sectors such as defensives and corporate credit in Europe.

Demand

ESG is something which has been prominent and has drifted its way over here from the Nordic pension funds and the Nordic region as a whole.

We are seeing more and more demand and we are seeing a lot of concern from investors regarding the environment and social impacts companies have.

It’s not just about compliance and investments, but it’s also about their conscious and social impact. We want to work out how we can use ESG, and how we can integrate it into our selection process.

2017 regrets

One regret from the last year is possibly our allocation to European equity. We had it earlier in the year due to the challenge of the political situation and some elections, especially in France.

Maybe we were a bit too defensive in certain parts, however, this was more from an asset allocation perspective than pure fund choice or selection.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Luxembourg Forum

    Citywire Luxembourg Forum

  • Citywire DACH 2017

    Citywire DACH 2017

  • Citywire Italy 2017

    Citywire Italy 2017

  • Citywire Berlin 2017

    Citywire Berlin 2017

  • Citywire Miami 2017

    Citywire Miami 2017

  • Citywire Professional Buyer

    Citywire Professional Buyer

  • Citywire Madrid 2017

    Citywire Madrid 2017

  • Citywire Switzerland Retreat 2017

    Citywire Switzerland Retreat 2017

  • Citywire Amsterdam 2017

    Citywire Amsterdam 2017

  • Citywire Frankfurt 2017

    Citywire Frankfurt 2017

  • Citywire Alternative Ucits Retreat 2017

    Citywire Alternative Ucits Retreat 2017

  • Citywire Paris 2017

    Citywire Paris 2017

  • Citywire Milan 2017

    Citywire Milan 2017

  • Citywire Deutschland 2017

    Citywire Deutschland 2017

  • Citywire DACH 2017

    Citywire DACH 2017

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016