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Prescient Investment Management doesn’t take on every investment mandate in its dealings with clients.
First, it ensures that the mandate in question fits into its quantitative model of asset management. Second, it insists on satisfying itself that it possesses the right skills and appropriate tools to manage it. And third, it only agrees to the proposition if it believes that it’s able to consistently fulfil the requirements.
Eldria Fraser, CEO of Prescient Investment Management, says: “It is abundantly clear that markets don’t move in one direction – up. Consequently, we commence engagement with clients by asking what is the worst return they would have tolerated in a 2008-09 type scenario.
“The mandate for a particular client is then structured such that it cannot underperform this worst-case scenario. Prescient then endeavours to capture good returns in positive markets coupled with appropriate downside management, such that the client is assured of benefiting fully over time.”
“The market changes over time, hence, we also engage with clients when we think mandates have become unrealistic. As beating inflation by high margins has become difficult since 2008, we have spent time explaining the current market situation to clients and managing expectation.”
First, it ensures that the mandate in question fits into its quantitative model of asset management. Second, it insists on satisfying itself that it possesses the right skills and appropriate tools to manage it. And third, it only agrees to the proposition if it believes that it’s able to consistently fulfil the requirements.
Eldria Fraser, CEO of Prescient Investment Management, says: “It is abundantly clear that markets don’t move in one direction – up. Consequently, we commence engagement with clients by asking what is the worst return they would have tolerated in a 2008-09 type scenario.
“The mandate for a particular client is then structured such that it cannot underperform this worst-case scenario. Prescient then endeavours to capture good returns in positive markets coupled with appropriate downside management, such that the client is assured of benefiting fully over time.”
“The market changes over time, hence, we also engage with clients when we think mandates have become unrealistic. As beating inflation by high margins has become difficult since 2008, we have spent time explaining the current market situation to clients and managing expectation.”
