Asset Managers Gear Up For New Normal As Market Bears Unprecedented Turmoil

This year is barely into its second quarter but as events have shown, this will be one for the history books. Hardly any country is untouched by the novel coronavirus, which comes on top of dramatic changes in the world’s economy, climate, environment and politics.

IMF has already forecast the world economy to shrink by 3% this year. Singapore’s economy is expected to contract by up to 10% given trade volume has plummeted while the lockdown has been extended. Commodity prices have also fallen, with crude oil futures diving into a hitherto unthinkable negative territory.

For investors, the decade-long bull run is by now a distant memory. Leaving their money as cash deposits simply won’t cut it in the low-interest rate environment. Rather, they should stay focused on the longer-term picture. “It’s never been more important to have your investments entrusted with talented and experienced professionals,” says Xav Feng, director at Lipper Asia Pacific Research, Refinitiv.

 Xav Feng, director at Lipper Asia Pacific Research, Refinitiv

Besides having to play a bigger role, professional investment managers now have to assume a heavier responsibility. “Fund asset management firms should help investors build up a diversified portfolio and protect the investor interests in the current volatile environment,” says Feng.

The professional investment managers agree. “It’s during these periods of higher volatility, greater uncertainty and increasing complexity that our competitive strengths have set us apart,” says Ramon Maronilla, managing director, head of the Asia ex-Japan investment specialist team for global fixed income, currency & commodities (GFICC) group, at J.P. Morgan Asset Management.

To acknowledge the role of these professionals, Refinitiv is presenting yet another edition of its long-running Refinitiv Lipper Fund Awards, which has been organised for more than 30 years and in over 17 countries. The awards honour funds and fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers and highlight these top funds to potential investors. The award is built on Refinitiv Lipper’s 47-year track record of providing independent content. Few may realise that the group was first to develop fund classifications that place funds in their respective peer groups.

“The merit of the winners is based on entirely quantitative criteria. This coupled with the unmatched depth of fund data, results in a unique level of prestige and ensures the award has lasting value. Renowned fund data and proprietary methodology is the foundation of this prestigious award qualification, recognising excellence in fund management,” explains Feng.

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Gary Anderson 1 month ago Contributor's comment

ESG makes for good PR.