At Natixis John Hailer Spearheaded Portfolio Investment Changes
John Hailer, Natixis’ global head of equity portfolio management, recently made a rare public appearance at the bank’s annual meeting in Paris. The news was preceded by several weeks of unusual activity in the fixed-income and equities markets. The changes he announced are likely to have an impact on how banks design portfolios for investors.In order for a portfolio to be successful, it is critical that it can withstand market volatility; yet convincing new investors to put capital into an investment strategy that could prove difficult to hold during volatile periods can be challenging.
Changes in fixed-income markets have been more extreme than equities. For example, in the past few years we have seen the end of some fixed-income instruments that have provided investors with certain supply benefits. We will see this trend continue in the future.
John Hailer also addressed two key aspects of his job at Natixis: what he could expect as a client’s portfolio manager if he were operating outside the bank, and why
John Hailer, global head of equity portfolio management, recently made a rare public appearance at the bank’s annual meeting in Paris. The news was preceded by several weeks of unusual activity in the fixed-income and equities markets. The changes he announced are likely to have an impact on how banks design portfolios for investors.In order for a portfolio to be successful, it is critical that it can withstand market volatility; yet convincing new investors to put capital into an investment strategy that could prove difficult to hold during volatile periods can be challenging.
Changes in fixed-income markets have been more extreme than equities. For example, in the past few years we have seen the end of some fixed-income instruments that have provided investors with certain supply benefits. We will see this trend continue in the future.
John Hailer also addressed two key aspects of his job at Natixis: what he could expect as a client’s portfolio manager if he were operating outside the bank, and why he is sometimes frustrated by mandates from clients.
Natixis is grappling with the question of who, exactly, the client is. The answer depends on a variety of factors such as investor risk profile, personal preferences and the complexity of the investment strategy.
Over time we have built up experience with different types of clients and between our different regions. I visited several regional offices during my tour of Europe to learn about these differences and to understand what might be useful for my team in France. My objective was also to share with them my knowledge and experience as it applies to their specific market conditions.
And if a portfolio manager chooses to leave it after working there for a couple years, he or she should expect that the bank will take client relationships into account when making hiring decisions.
Conversely, if you are a portfolio manager at it and you want to leave the bank to work for a client, it is important that we as a firm understand why. For example, does this person want more autonomy or does he or she want more exposure to certain strategies?
What is unfortunate for me is knowing that we have almost always been right in executing our strategy, but knowing that some clients may have lost money on those decisions.
As portfolio managers are often thrust into situations where they must make critical decisions, they must be able to make those decisions with their convictions or pay the price by losing credibility with both clients and colleagues.
is sometimes frustrated by mandates from clients.
It is grappling with the question of who, exactly, the client is. The answer depends on a variety of factors such as investor risk profile, personal preferences and the complexity of the investment strategy.
Over time we have built up experience with different types of clients and between our different regions. I visited several regional offices during my tour of Europe to learn about these differences and to understand what might be useful for my team in France. My objective was also to share with them my knowledge and experience as it applies to their specific market conditions.
And if a portfolio manager chooses to leave it after working there for a couple years, he or she should expect that the bank will take client relationships into account when making hiring decisions.
Conversely, if you are a portfolio manager at it and you want to leave the bank to work for a client, it is important that we as a firm understand why. For example, does this person want more autonomy or does he or she want more exposure to certain strategies?
What is unfortunate for me is knowing that we have almost always been right in executing our strategy, but knowing that some clients may have lost money on those decisions.
As portfolio managers are often thrust into situations where they must make critical decisions, they must be able to make those decisions with their convictions or pay the price by losing credibility with both clients and colleagues.