Says fund managers need to focus on absolute return and looking after investor interest
The highly respected Australian fund manager Manny Pohl is launching a new long only, high conviction, growth style equity product via his new venture, EC Pohl & Co.
Dr Pohl says the new fund, the EC Pohl & Co Mid Market Opportunities Fund, will focus on stocks outside of the ASX top 50 and will also allow for up to 40% of its funds under management to be invested in unlisted private companies, which have the intention of listing on the ASX.
Dr Pohl said the central theme of the investment process will be investment flexibility to identify capital light, quality companies and a focus on generating absolute returns for investors.
“What I have seen in the past is that the investment process can become too rigid as the manager strives to ensure the fund remains within certain parameters. Manager skill and the identification of exceptional investment opportunities therefore become secondary and may not be adequately reflected in the portfolio construction process.”
“We aim to empower our investment team to use their skill in assessing investment opportunities and the relevant risks, rather than relying on indices and predefined structures to determine outcomes. Our incentive structures have been developed so that employees are remunerated as owners, and focused as investors.”
Dr Pohl says he believes that the principles of focusing on the absolute (rather than relative) return to investors and always acting in clients’ best interests should underpin any organisation managing other people’s money.
Dr Pohl attributes the very large growth in SMSF investors in part due to the fact that these investors have, by and large, lost faith in the finance industry and believe they can do a better job managing their own money.
“Just as the advice industry has had to change its policies and practices to rebuild the trust of Australian investors, so too investment managers must look at how they manage their clients’ money and understand that they are only temporary caretakers of these funds and that they can make a huge difference to their clients financial wellbeing.
EC Pohl & Co Mid Market Opportunities Fund was operational as of 3 July 2013 and is available to wholesale investors with a minimum of $20,000 to invest. EC Pohl & Co has reserved capacity for the fund out of its total firm capacity; as the total firm capacity will be capped at A$1.5 billion, capacity for the fund will be limited. Equity Trustees is the Responsible Entity for the Fund and EC Pohl is the Investment Manager.
Manny Pohl was the driving force behind one of Australia’s most awarded fund managers, Hyperion Asset Management and the highly respected listed investment company, Flagship Investments Limited. He brings investors a proven investment model of high quality investing, consistently ranked top quartile performance across most time periods.