Wealth management is no different from any other services industry. However, we have witnessed many individuals’ eyes glaze over when the subject is raised. In most cases, people struggle to understand the various steps in the investment process and what it entails to calculate the fair value of an investment and how it relates to the share price. Furthermore, run-of-the-mill asset management businesses that passively manage funds charge exorbitant fees despite poor relative performances. It is through client ignorance that these businesses continue to thrive, feeding off the fear and lack of confidence of individuals to take control and protect their financial future.
We found ourselves asking: What has changed in the world? Which assumptions do people make that are no longer true? Why does it feel like everything is speeding up? The fact is, a lot has changed. Yet, when I look at the financial services industry in South Africa - very little has changed. Secondly, what are clients/investors being offered that is new, better and faster – surely the same should be happening to one’s investments? Surely, investment strategies should be adjusting to a new environment?
Instead, assets are funnelled into the same age-old fixed strategies despite the cyclicality of the markets. Fund managers are fixated on benchmarks as this drives their remuneration. The really important decisions like asset allocation are now left up to financial advisors. A scenario: An individual is in the final years of working before he/she is to retire; markets are at all-time high with great uncertainty. In this situation, the individual’s future livelihood is dependent on markets continuing to go up – he/she cannot afford another financial crisis. This is where it pays to be nimble and uncorrelated to global indices; to gain capital protection and the confidence to retire at the end of those final working years. In many instances, this strategy has priceless benefits to one’s portfolio.
Asymmetry has developed new dynamic investment strategies and processes that are nimble and absolutely necessary in today’s volatile markets; more importantly, they work! The Fund focuses on asymmetry and positive returns despite weak markets. Asymmetry is gained through an investment with a high margin of safety and significant upside potential. Asymmetry Asset Management aims to share this knowledge with its investor base. We want to build our clients’ confidence in reading and understanding financial markets while delivering strong sustainable returns above all.