Tuesday, March 31, 2009
Another couple of months and the New Zealand absolute return industry moves on...in a couple of ways. Year to date performance for the Ernst & Young New Zealand Absolute Return Index retains positive momentum (+2.495% YTD to the end of Feb) and annualized returns are running circa 19.50%. This is mildly spectacular in the current environment. We are getting some local media coverage this week and a new global PR campaign is due to start soon. Some local managers are seeing substantial asset inflows against a global redemption trend. But this doesn't take away the fact that some of us are being driven to giving up on making New Zealand a global base for operations. In New Zealand, and nearby, there are some great strategies run by some innovative teams. But put the current global economic environment against the distance from customer-base with which most of us deal with, and there needs to be compromise. And so it is that we "fare thee well" to most of the 36 South Investment Managers team as it moves its centre of operations to London. Some members of the investment team and administrative staff will continue to reside in New Zealand, but the key principals are off to London to leverage a strong performance record from the last few years. So is there a lesson here? I believe so. We have to start thinking globally - which means accepting international geographical representation for our businesses is a "must". My business Pure Capital is doing just that, establishing a full European presence to harness both business development and timezone efficiencies. We are partnering with a European business to break down some of the initial barriers. I believe this is a logical development for the New Zealand Absolute Return Industry and will eventually lead to a situation where we retain the lifestyle and other benefits - whilst continuing to grow our businesses - and their potential for even greater growth.
Posted by Anthony Limbrick at 12:31 AM